Peter Smith
The EUR/USD pair is showing fresh weakness on the 4-hour timeframe, struggling to break above 1.1730 resistance. Recent price action suggests sellers are taking control, with attention now shifting to downside targets below current levels.
Resistance Rejection Sets Up Bearish Move
After bouncing from late September lows, EUR/USD has stalled at a key supply zone. Trader Sir Hisham recently flagged this bearish setup, noting the pair looks set for a pullback toward liquidity below 1.1650.
The chart shows clear resistance between 1.1715 and 1.1735, with rejection wicks signaling selling pressure. This area aligns with a former breakdown level, making it a natural spot for bears to defend. With the rally failing to gain traction, momentum is shifting lower, targeting the 1.1645–1.1650 zone where stop clusters and liquidity tend to draw price.
Dollar Strength and Eurozone Concerns Weigh on the Pair
The broader picture supports the bearish outlook. The U.S. dollar remains firm as the Federal Reserve holds its hawkish stance, keeping rates elevated and pressuring the euro. Meanwhile, weak growth in Germany and across the eurozone continues to weigh on the single currency. Risk-off sentiment in global markets has also boosted demand for the greenback, tilting the balance further against EUR/USD.
What to Watch Next
If the resistance rejection holds, 1.1650 becomes the next key target. A clean break below could open the path toward 1.1600 or lower. However, a push above 1.1735 would invalidate the bearish case and potentially trigger renewed buying. For now, the setup favors further downside, with liquidity zones likely guiding the next move.
Peter Smith
