Sergey Diakov
EUR/USD has taken a bearish turn lately, with sellers stepping in near a key resistance level. The pair's struggling to push higher, and right now everything points to more downside ahead. Traders are watching closely as the next move takes shape.
Sellers Hold the Line at 1.1640–1.1660
Recent analysis shows EUR/USD hitting a wall in the 1.1640–1.1660 zone.
The pair just can't seem to break through, and each attempt gets knocked back down.
Here's what the chart is showing:
- Price getting rejected inside the resistance zone repeatedly
- A clean pattern of lower highs and lower lows taking shape
- A small bounce expected before another leg down
- Target sitting near 1.1580, where support and liquidity meet
- The U.S. dollar stays supported by rate expectations
- Eurozone economy continues showing weakness, especially in manufacturing
- Yield spreads favor dollar inflows
- Risk-off sentiment keeps pushing investors toward USD
The setup suggests more selling pressure is coming once this brief pullback wraps up.
Technical Picture Points to 1.1580
The upper zone shows clear exhaustion every time buyers try to push through. Reversal candles keep appearing, and bullish momentum dies quickly. The intraday action tells a consistent story—lower highs, lower lows, and only shallow pullbacks. That's classic seller dominance, and they're likely waiting for the right spot to pile back in.
Right now, EUR/USD is pulling back slightly toward 1.1605–1.1610. That's where the next wave of selling is expected to kick in. If that holds, we're probably heading down to 1.1580 next. When technicals and fundamentals agree like this, the trade thesis gets a lot stronger.
Downside to 1.1580 Looks Likely
As long as EUR/USD stays under 1.1620, the path of least resistance is down toward 1.1580. Only a strong move above 1.1645 would change the picture and shift focus back to the supply zone.
For now, sellers look positioned for another push lower, and traders are keeping a close eye on how this setup develops.
Sergey Diakov
