FX pair has reached major resistance level, close to 1.18000
price zone.
Economic Calendar Analysis
Elevated levels of volatility may persist throughout current week.
EUR/USD hourly chart analysis
The EUR/USD pair is currently dominated by sellers following a significant technical breakdown on the hourly chart. This wasn't a gradual decline but a sharp, high-momentum move that broke through several layers of support, indicating a strong shift in market sentiment. Price has sliced through all three of its major Simple Moving Averages. These levels, particularly the 200-period SMA, often act as a dynamic floor for the price. Breaking below all of them so decisively demonstrates a powerful push from sellers and confirms that the short-term trend is now firmly bearish.Hourly Chart
EUR/USD daily chart's review
The EUR/USD daily chart shows that the multi-month uptrend is now under serious threat. As of Tuesday morning, a sharp, decisive decline has pushed the price below the critical 50-day Simple Moving Average, a level around 1.1550 that had consistently provided support throughout the rally. Any upward rallies are likely to be met with renewed selling pressure near the 1.1550 resistance. This break is a significant bearish signal, suggesting a deeper correction or a potential trend reversal is underway.Daily chart
Read More: Technical Analysis
Traders sentiment is bearish
Continuing the trend from previous weeks, EUR/USD maintains its bearish sentiment, driven by a mix of macroeconomic headwinds and evolving market expectations. Persistent concerns over the Eurozone's economic outlook, coupled with stronger U.S. data supporting the dollar, have kept the pair under pressure.