Eseandre Mordi
The EUR/USD pair is showing fresh downside momentum after being rejected from the 1.1660โ1.1670 resistance zone, suggesting the market is shifting toward lower prices. As long as the euro stays capped below this level, sentiment looks set to remain bearish through midweek.
Euro Struggles After Rejection from Key Resistance
On the 1-hour chart, EUR/USD made an attempt to retest the previous high near 1.1667 but quickly reversed course, confirming a bearish rejection from the supply zone. A setup shared by ๐๐๐ฆ๐๐ฒ๐ข๐๐ง trader highlights this rejection through a clear wick followed by a sustained drop below the BPR/IFVG area (Bearish Price Rejection / Imbalance-Fair Value Gap), marked in blue on the chart.
The pair is now hovering around 1.1636, with sellers firmly defending the upper boundary. This zone represents a critical liquidity area where earlier buy orders have been absorbed. If price continues to hold below the imbalance region, the next logical target sits at 1.1540โ1.1550, shown in green and aligning with relative equal lows mentioned in the original analysis.
Technical indicators back the bearish case: the structure has shifted to lower highs and lower lows, while momentum favors continued downside. Buyers would need to push back above 1.1660 to challenge this setup, but until that happens, the bias stays negative.
Dollar Strength Adds Weight to the Move
Beyond the chart, fundamentals are playing in the dollar's favor. Treasury yields have held steady near recent highs, and market sentiment remains cautious ahead of key U.S. inflation and jobs reports. Meanwhile, the Eurozone continues to face headwinds from sluggish manufacturing and a careful tone from the ECB. This economic divergence reinforces the bearish technical setup, leaving EUR/USD exposed to further losses.
Bears Stay in Control Below 1.1660
Key levels to watch:
- Resistance: 1.1660โ1.1670 (rejection zone)
- Support: 1.1540โ1.1550 (downside target)
- Current price: ~1.1636
As long as EUR/USD remains under 1.1660, the pair looks vulnerable to deeper declines toward 1.1540, where previous liquidity is parked. Any bounce above 1.1670 would likely be viewed as a short-term correction rather than a trend reversal. With both structure and sentiment aligned, EUR/USD continues to favor sellers as the market braces for extended weakness in the sessions ahead.
Eseandre Mordi
