Saad Ullah
The EUR/USD is approaching a make-or-break moment as it battles against stubborn resistance levels that have repeatedly rejected higher prices. With the pair currently trading near 1.16735, market participants are closely watching whether buyers can finally push through the psychological barrier or if sellers will once again assert dominance.
EUR/USD Price Faces Crucial Resistance Test
The euro-dollar pair is showing clear signs of struggle as it approaches the critical 1.1682 resistance level on the H1 timeframe. Technical analysis reveals a bearish framework that's got traders on edge, particularly as the current price of 1.16735 sits dangerously close to a major supply zone.
What makes this resistance level particularly interesting is its alignment with a Fair Value Gap zone – a technical pattern that often acts like a magnet for price rejection. These FVG areas have historically proven to be formidable obstacles where institutional sellers step in to defend higher levels.
The market's hesitation around these levels tells a story of weakening bullish momentum, even as some buyers continue their attempts to push higher.
Bears Target 1.1631 Drop as Technical Setup Deteriorates
If the current resistance holds firm, technical analysts are eyeing a swift decline toward 1.16311, which corresponds to the Previous Day Low and Day Opening Level zone. This isn't just another support level – it's a confluence area where multiple timeframes converge.
Should selling pressure intensify and break below this initial target, the path opens up for an even deeper correction toward 1.15898, marking the previous significant low. This scenario would represent a substantial shift in market dynamics, potentially signaling the end of the recent bullish attempt.
Market veterans know that H1 timeframe setups like this one often produce rapid moves when they finally break. The combination of resistance rejection and target alignment suggests we might be witnessing the setup for the next major directional move in EUR/USD.
Saad Ullah
