Victoria Bazir
The EUR/USD pair is trading under renewed pressure as short-term price action reveals a decisive rejection from recent resistance zones. Market participants are now focused on whether the pair can defend its early October lows or if further declines are ahead.
EUR/USD Faces Bearish Momentum
MR EUR recently highlighted that the technical picture for EUR/USD has turned increasingly bearish, with momentum indicators suggesting the downtrend may have room to run.
The 5-minute chart tells a clear story: after being rejected near 1.1563, the pair slipped through the fair value gap around 1.1560 and tested support closer to 1.1542. This price behavior signals that sellers are driving the action, consistently capping rallies and absorbing any upward attempts before they gain traction.
Chart Analysis: Resistance Rejection and Downside Pressure
The chart reveals a textbook rejection pattern. An imbalance resistance level sits at 1.1562–1.1563, effectively acting as a ceiling that bulls haven't been able to break. The fair value gap near 1.1560 was filled as sellers used available liquidity to push prices lower. Meanwhile, the early range low around 1.1542 is now serving as immediate support, though it's under mounting pressure. These repeated rejections at resistance confirm the market's reluctance to let the pair move higher, at least for now.
Why EUR/USD Is Weakening
Several fundamental factors help explain why EUR/USD continues to struggle. U.S. dollar strength remains a major theme, fueled by expectations that the Federal Reserve will keep interest rates elevated for longer than many had anticipated. At the same time, the eurozone economy is showing signs of fatigue, with disappointing data out of Germany and France weighing on sentiment. Add to this the pull of rising U.S. Treasury yields, which continue to attract capital flows toward dollar-denominated assets, and EUR/USD finds itself facing a challenging environment.
Victoria Bazir
