Peter Smith
The euro is getting hammered again. EUR/USD just cracked below crucial intraday support, and the technical picture isn't pretty. With fresh supply zones stacking up below 1.1800, this could be the start of something bigger.
Technical Breakdown
Trader MR | EUR spotted the breakdown early - price got rejected hard near 1.1815 and hasn't looked back since.
The chart tells a clear story right now:
- Resistance rejection at 1.1815-1.1820: This level has become a brick wall for bulls
- Fresh order blocks below 1.1800: New supply zones are screaming seller control
- Liquidity sweep under 1.1780: That sharp dip grabbed stops and flipped sentiment bearish
- Next target at 1.1765: This key level is where bears are aiming next
Why is the euro struggling so much? The dollar keeps flexing as U.S. yields stay elevated and the Fed maintains its tough stance. Meanwhile, Europe's growth story keeps disappointing with weak manufacturing data and sluggish economic momentum. When risk appetite turns sour, money flows straight into dollars, leaving the euro behind.
The trading setup is straightforward. As long as EUR/USD stays capped under 1.1810, bears are in control. Watch for any bounces back to 1.1795-1.1800 to turn into resistance - that's where sellers will likely pile in again. If momentum keeps building, 1.1765 is the obvious target. Only a strong break back above 1.1810 would change this bearish narrative.
Peter Smith
