Victoria Bazir
The euro is once again losing traction against the U.S. dollar after a brief recovery attempt. Recent technical signals suggest the EUR/USD pair may be preparing for another downward move, as buyers struggle to push above key resistance levels. With market sentiment favoring the dollar and price action forming a bearish structure, traders are now watching for signs of renewed selling pressure.
Chart Analysis: Resistance Zone Limits Upside
The daily chart highlights a clear bearish bias, as noted by trader 100x. Price action remains capped below the 1.1620–1.1630 resistance area, identified as a Fair Value Gap — a zone where previous inefficiencies in trading volume often attract short-term liquidity before resuming the broader trend.
The resistance area aligns with the upper candle wicks where previous rallies failed to gain traction, while the most recent candles are small and lack strong bullish momentum, signaling indecision and weakening buyer strength.
A key Equal Lows level sits near 1.1540–1.1550, serving as the next support area. If this level gives way, the next downside target could extend toward 1.1500, confirming a potential continuation of the downtrend. The pattern suggests a sell-side imbalance, where liquidity above the FVG may attract price briefly before sellers re-enter the market.
Broader Market Context: Dollar Still Dominant
The bearish tone in EUR/USD coincides with continued U.S. dollar resilience, driven by strong economic indicators and the Fed's commitment to maintaining restrictive policy. Meanwhile, the European Central Bank faces limited room to maneuver as growth slows across the Eurozone, creating a widening divergence in monetary outlooks. This macro backdrop reinforces the technical outlook, where rallies are likely to face strong resistance, keeping EUR/USD under pressure in the near term.
Victoria Bazir
