Usman Salis
The euro just gave back everything it gained from Powell's comments, and traders are holding their breath at a crucial support level. What looked like a promising breakout has turned into a test of whether bulls still have any fight left in them.
EUR/USD Price Retraces Gains After Powell
Talk about a reality check. The EUR/USD pair has completely reversed course, wiping out that entire spike we saw after Jerome Powell's Fed remarks. By session's end, the euro was sitting right back at 1.1622 – essentially where it started before all the excitement began.
Trader @ridvanbasturk nailed it when he pointed out the market has "gone back to where Powell's move started." It's a perfect example of how quickly sentiment can shift in forex, especially when dollar strength keeps reasserting itself.
The selloff wasn't gradual either. Once the pair failed to hold above key levels, it was like watching dominoes fall as support after support gave way.
EUR/USD (EURUSD) Technical Analysis
Looking at the 30-minute chart, you can see exactly where things went wrong. The pair tried to build on its momentum above 1.1742 but just couldn't sustain the bullish energy. That failure triggered a cascade of selling that sliced through 1.1700 and 1.1660 like they weren't even there.
Now we're sitting in the 1.1620–1.1625 zone, which is basically make-or-break territory:
- Current support: 1.1620 – 1.1600
- Immediate resistance: 1.1680 – 1.1740
If the bulls can dig in and defend 1.1620, we might see a decent bounce back toward 1.1700. But if this support crumbles, the next stop could be 1.1550, and that would pretty much seal the deal for the bears.
The momentum indicators aren't doing the euro any favors right now – they're pointing south and suggesting more downside pressure could be coming.
Usman Salis
