Saad Ullah
The euro has been struggling lately, with EURUSD repeatedly getting pushed back from higher levels. After multiple failed attempts to break resistance near 1.1640, sellers seem to be gaining the upper hand.
What the Chart Is Telling Us
According to trader analysis from B trader, the pair is setting up for a potential move down to the 1.1520 zone, assuming current support at 1.1600 gives way.
The price action paints a pretty clear picture of weakening momentum. Each time EURUSD tries to climb above 1.1640, it gets knocked back down—creating what traders call lower highs. Right now, the pair is testing support around 1.1610–1.1600, and if that floor breaks, we could see a quick drop toward 1.1530–1.1520. What makes this especially noteworthy is that every bounce attempt has been met with fresh selling, showing there's solid resistance waiting above. The technical setup suggests bears are in control unless something changes fast.
Why Fundamentals Back the Bearish Case
It's not just the charts pointing lower. The dollar has been catching a bid thanks to better-than-expected U.S. economic data and the Federal Reserve's hawkish stance on rates. Meanwhile, the eurozone is dealing with its own headaches—sluggish growth and inflation that just won't quit. Market positioning data shows more traders are piling into short euro positions, which reinforces what the technicals are already screaming. When fundamentals and technicals line up like this, it's hard to ignore.
All eyes are on 1.1600. If that support cracks, the door swings wide open for a run toward 1.1520. Sure, we might see a quick bounce—markets rarely move in straight lines—but unless bulls can reclaim territory above 1.1640, the path of least resistance looks down. We're basically at a fork in the road: either the breakdown happens and bears get what they want, or we get a surprise rally that catches everyone leaning the wrong way. For now though, sellers appear to have the edge.
Saad Ullah
