Sergey Diakov
The EUR/USD pair shows continued weakness after failing to hold above 1.1550. Sellers remain in control while buyers struggle to regain traction. Recent consolidation appears to be a brief pause before another leg lower.
Price Action Shows Continued Weakness
The 4-hour chart displays a clear lower-high and lower-low pattern. After rejection near 1.1570, trader Mahedi Hasan notes the price now hovers around 1.1533 with no reversal signs. Two critical levels stand out: O.IRL (Order Imbalance Resistance Level) around 1.1560 where sellers defend price, and ERL (Expected Reaction Level) around 1.1400 as the likely target.
The setup suggests a small bounce toward resistance before resuming downward, reflecting a continuation pattern where rebounds meet fresh selling.
Broader Market Forces at Play
Euro weakness mirrors broader dollar strength from firm Treasury yields and hawkish Fed rhetoric. Eurozone data showing muted inflation and slowing production offers little support. The 1.1560–1.1570 area remains key—failure to reclaim it reinforces the bearish case toward 1.1450–1.1400.
What to Expect Next
EUR/USD could extend lower toward 1.1420–1.1400 if selling persists. Only a decisive break above 1.1570 would challenge the bearish view. Current price action confirms sellers dominate.
Sergey Diakov
