Peter Smith
The euro is facing fresh selling pressure against the U.S. dollar after struggling to hold above the 1.17 handle. Recent price action suggests the pair may be gearing up for another leg down, with market structure pointing to a continuation of lower highs and lower lows. What looked like a recovery attempt now appears to have been just a corrective bounce, and the next move could take the pair deeper toward the 1.1550 zone.
EUR/USD Faces Renewed Selling Pressure - B Trader Analysis
On the 4-hour timeframe, EUR/USD has retested the 1.1730–1.1750 supply zone, a resistance area where sellers have repeatedly shown up throughout October. According to B Trader's analysis, the rejection is clear - long upper wicks and decisive bearish candles reflect exhaustion among buyers.
The chart displays a textbook bearish structure, with each rally stopping short of the previous high. Price has already slipped below 1.1650, an intermediate support, confirming that short-term momentum belongs to the bears. The projected path hints at a possible minor pullback toward 1.1670 before resuming the decline, keeping sellers firmly in the driver's seat.
Key Technical Levels
Resistance sits at 1.1730–1.1750, acting as the primary supply block. Just below that, 1.1680–1.1700 could serve as a retest zone before the next drop. Current support is holding near 1.1650, though it's fragile. The downside target lies at 1.1550, a major support and liquidity pocket. If price closes above 1.1780, the bearish scenario weakens and would need reassessment. As long as the pair stays below 1.1750, the bias leans lower. The descending arrow on the chart reflects a measured continuation move toward 1.1550, consistent with the overall structure.
Macro Drivers: Dollar Strength and Euro Weakness
From a fundamental standpoint, the euro remains weighed down by policy divergence. The European Central Bank's cautious stance contrasts sharply with the Federal Reserve's resolve to keep rates elevated, which continues to support the dollar. Add to that softer eurozone growth and disappointing PMI readings, and euro sentiment stays under pressure. Meanwhile, the greenback benefits from safe-haven demand and solid U.S. economic data, reinforcing the technical case for further EUR/USD downside.
More Downside Likely
The structure favors a bearish move toward 1.1550. There may be a small bounce early in the week, but as long as price remains capped under 1.17, the odds favor further decline. A clean break below 1.1650 with strong momentum could encourage sellers to push toward the next support zone. On the flip side, a sustained close above 1.1750 would challenge the short-term bearish view and warrant a reassessment.
Peter Smith
