Saad Ullah
The euro has weakened against the dollar, slipping below an important intraday resistance level. Price action suggests downside momentum is building, with the New York trading session likely to bring further moves lower as the pair hunts for liquidity.
Technical Setup Points to Further Weakness
The H1 timeframe reveals a clear rejection from the 1.1740 order block, where price faced selling pressure and reversed sharply. Trader Sir Hisham highlighted this bearish setup in his latest market update, noting that EUR/USD is positioning for continuation during what he calls the "NY killzone" – the period of high volatility when New York markets open.
Following the rejection, the pair dropped toward 1.1720 and appears poised to extend lower. The most compelling target sits at 1.1645, a liquidity pool that has drawn price action multiple times in recent sessions. With sellers firmly holding the reins, the technical structure supports the idea that this level will be tested again. Order flow analysis suggests that accumulated buy-side liquidity below current levels is acting as a magnet for price.
Fundamental Backdrop Reinforces Bearish View
The technical picture doesn't exist in isolation. Broader market forces continue to favor dollar strength over the euro. The European Central Bank has maintained a relatively dovish posture, while the Federal Reserve's messaging has been comparatively hawkish. This policy gap creates an environment where dollar demand remains elevated, reinforcing the bearish technical momentum we're seeing on the charts. When fundamentals and technicals align like this, directional moves tend to gain conviction.
Price Levels That Matter
Resistance on EUR/USD remains capped at 1.1740, the order block where sellers stepped in aggressively. The current pivot sits around 1.1720, and the next meaningful downside target is the 1.1645 liquidity zone. These levels frame the immediate risk-reward landscape for short positions on EUR/USD.
Saad Ullah
