The EURUSD pair is experiencing increasing bearish pressure after successfully breaking through the support level of a rising wedge pattern, which is often seen as a technical indicator of further weakening. This situation is further reinforced by the emergence of a Support Become Resistance (SBR) pattern on the hourly chart, indicating that the broken support level is now acting as a new resistance level. This scenario opens greater opportunities for sellers to push prices down, thus increasing the potential for further declines in tonight’s trading session.
From a technical indicator perspective, bearish signals are becoming increasingly robust. The ZigZag pattern displays a downward structure with the formation of lower lows, while the MACD indicator is moving negatively, emphasizing the dominance of sellers. This combination of technical patterns provides strong validation that selling pressure remains dominant, suggesting that EURUSD has a high probability of continuing its decline in the short term, targeting the nearest support level.
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The EURUSD continues to establish a bearish trendline, signaling that the likelihood of downward movement is increasing. The MA and ZigZag indicators also provide aligned signals, further amplifying the potential for downward pressure on the 15-minute chart. With this combination, EURUSD has the opportunity to continue its decline and test the significant support level at 1.16160.
Technical Reference: sell while below 1.16880
Potential Stop Loss 1: 1.16775
Potential Stop Loss 2: 1.16880
Potential Take Profit 1: 1.16265
Potential Take Profit 2: 1.16160
