Usman Salis
The euro continues to struggle against the US dollar as technical selling pressure intensifies. EUR/USD has decisively broken through a critical support area, signaling that bears have gained the upper hand in what appears to be a significant shift in market dynamics.
EUR/USD Price Action: Bears Take Control
The euro has weakened considerably against the dollar, with EUR/USD breaking cleanly through the Imbalance Fair Value Gap (IFVG) support on the 4-hour timeframe. This decisive move lower has targeted key liquidity levels below and suggests traders are positioning for further downside.
Technical analyst @sirrillahfx noted this important breakdown, emphasizing how price not only broke the IFVG zone but also rejected attempts to return to the previous consolidation area. This rejection adds conviction to the bearish outlook as selling pressure builds.
Current Price: 1.1585
Key Technical Levels:
- IFVG Zone: Price broke through this support level decisively
- Supply/Demand Level: Also breached, reinforcing the bearish momentum
- Swing Low Target: The next major area where buyers might defend
Market Structure: The pair initially ran higher to collect liquidity above previous highs before reversing sharply lower - a classic pattern that often precedes sustained moves in the opposite direction.
This technical setup now favors continued selling pressure unless EUR/USD can quickly reclaim the broken support zone.
EUR/USD Price Outlook
With momentum clearly favoring the downside, the next logical targets lie around 1.1550-1.1500, where buyers may attempt to step in and defend these levels. A break below this zone could open the door for deeper losses and extend the current bearish phase.
However, if EUR/USD manages to reclaim the 1.1620-1.1650 resistance area, it could weaken the bearish case and lead to renewed sideways trading. For now, the technical picture and liquidity flows suggest further downside pressure is likely.
Usman Salis
