FX pair low levels of volatility in the previous week, closing above 1.17350.
Economic Calendar Analysis
Although economic calendar activity should be considered with low impact towards the FX pair, U.S government shutdown may bring elevated volatility levels in the shorter time frame.
EUR/USD hourly chart analysis
EUR/USD has experienced a major bearish breakdown from its consolidation range on the hourly chart and is now testing the key 1.1650 support level with strong downward momentum. After a prolonged period of trading within a tight, sideways range, sellers have taken aggressive control, shattering the previous support floor around 1.1710 with a large, impulsive bearish candle. This breakdown is confirmed by the price crashing decisively below the entire cluster of the 50, 100, and 200-period Simple Moving Averages, which will now act as formidable overhead resistance.Hourly Chart
EUR/USD daily chart's review
EUR/USD is showing bearish weakness within its long-term consolidation range; after a failed breakout attempt, the price has been rejected from the highs and has now broken below its 50-day moving average. The daily chart shows that while the underlying long-term trend is bullish, the market has been trading within a broad sideways range for the past three months between the major resistance ceiling at 1.1830 and a lower support zone near 1.1200. The recent failed breakout attempt above 1.1830 is a significant bearish signal that confirms the strength of the resistance and keeps the market in a state of indecision. This weakness is confirmed by the price breaking and closing below the 50-day SMA, which now acts as initial resistance and suggests sellers have taken control.Daily chart
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Traders sentiment is bearish
EUR/USD has been under sustained downward pressure, with the bearish sentiment deepening amid persistent USD strength and eurozone weakness. The move is being driven by a combination of macroeconomic divergence, central bank policy expectations, and broader risk-off flows favoring the U.S. dollar.