FX pair saw mediocre volatility levels, closing slightly below previous weeks close, closing at 1.17000.
Economic Calendar Analysis
Higher levels of volatility may be anticipated due to fundamental data release coming from United States.
EUR/USD hourly chart analysis
EUR/USD chart shows a corrective rally that is now testing a major confluence of resistance, putting the short-term recovery at a critical decision point. The price has been in a clear downtrend, defined by a descending trendline, but a recovery rally from the 1.1650 support has brought the price directly back up to test this crucial barrier. This resistance is a powerful cluster formed by the descending trendline, the 100-period SMA, and the 200-period SMA. The reaction here is key; a rejection from this zone would confirm the downtrend is still in control and likely lead to a re-test of the 1.1650 support, while a decisive breakout above the trendline and the moving averages would be a significant bullish signal.Hourly Chart
EUR/USD daily chart's review
EUR/USD daily chart shows a long-term uptrend that is currently testing a critical support level after being rejected from major resistance. While the pair remains in a clear uptrend, the bullish momentum has paused after the price failed to break through the key resistance area at 1.1830, causing a pullback. The price is now testing the 50-day moving average as support, which is a critical "line in the sand" for the trend. The overall bullish structure, with all key moving averages trending higher, remains intact for now. The reaction here is key: a strong bounce from the 50-day SMA would signal that the correction is over and the uptrend is likely to resume, while a decisive break and close below it would be a significant sign of weakness, suggesting a deeper correction is underway.Daily chart
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Traders sentiment is bearish
Deepening bearish sentiment continues to be reflected in trading volume, as more traders increase their selling activity and reduce exposure to risk assets. This sustained downward pressure suggests growing pessimism about market conditions, possibly driven by economic uncertainty, weak earnings, or geopolitical concern.