Peter Smith
The EUR/USD pair took a sharp dive on Friday, sliding to around 1.1643 after a rapid intraday selloff wiped out earlier gains.
Chart Breakdown: Clean Rejection From Resistance
The move reflects growing dollar momentum and cautious positioning ahead of important U.S. data. Trader 𝐋𝐞𝐦𝐚𝐲𝐢𝐚𝐧 noted the successful short setup with a simple as the euro's bounce attempt quickly fizzled out.
The 15-minute chart shows a decisive bearish move from the 1.1660–1.1663 zone, where price briefly paused before getting hammered lower. Key observations include:
- Breakout trigger: Sellers jumped in aggressively just below 1.1660 after several failed attempts to push higher
- Momentum shift: A steep red arrow on the chart captures the speed of the selloff, confirming strong bearish control
- Support level: Price dropped to 1.1643, lining up with a minor support area visible on the timeframe
- Candle pattern: Multiple large bearish candles show sellers dominated every step, with each 15-minute close printing lower than the last
This technical setup represents a textbook short-term breakdown. The rejection from near 1.1664 and acceleration toward 1.1640 confirm EUR/USD has shifted into a bearish microtrend within the intraday cycle.
What's Driving the Dollar Higher
The move fits the bigger picture where the dollar keeps outperforming as markets price in sticky inflation and delayed Fed rate cuts. Meanwhile, ECB officials remain hesitant to tighten policy further with eurozone growth looking shaky. Recent German and French manufacturing data came in mixed, while U.S. Treasury yields stay elevated—both factors weighing on the euro. Short-term players seem to be treating the dollar as a safe bet, especially with U.S. PMI and consumer sentiment reports coming up that could strengthen the greenback case even more.
Technically, EUR/USD now faces resistance around 1.1660—where the selloff started—while immediate support sits near 1.1640–1.1635. If bears keep pushing below 1.1640, the next downside target could be around 1.1615, a visible pivot from earlier this week. On the flip side, a recovery above 1.1660 would kill the bearish setup and potentially open the door to 1.1680. For now, intraday momentum and structure favor sellers, with the chart showing a clean breakdown backed by rejection wicks and strong follow-through.
Peter Smith
