Usman Salis
⬤ EUR/USD is hovering around a crucial bearish breaker on the daily timeframe following a rejection from higher levels. The pair's currently being watched closely to see if this breaker holds with proper confirmation on lower timeframes. After failing to push through recent highs, the currency pair has turned lower, putting the focus squarely on potential downside movement.
⬤ The bigger picture shows a rally that topped out in the 1.1780 to 1.1800 zone, where buyers ran into a wall and sellers stepped in. This area represents a bearish breaker linked to earlier market structure. Since getting rejected there, EUR/USD has dropped below that level, signaling that sellers are still in control while attempts to push higher keep getting shut down.
⬤ Right now, price is bouncing around the mid-1.16 to 1.17 range, where internal fair value gaps and near-term support levels are coming into play. If the pair stays below the bearish breaker with solid lower-timeframe backing, the bearish outlook stays alive. There's significant sell-side liquidity sitting much lower on the chart, which could act like a magnet if downside momentum picks up.
⬤ This setup carries weight for the broader FX market since EUR/USD is a major indicator of euro-dollar strength dynamics. A sustained hold below the breaker would lock in the downside structure on the daily chart, while breaking back above would stall the weakness and keep things choppy. How the pair handles this zone will shape near-term direction and volatility across major currency pairs.
Usman Salis
