EURUSD Technical Analysis Summary

The recent analysis of the EURUSD currency pair indicates a prevailing bearish sentiment among sellers, as they have successfully maintained control over the market. The analysis highlights key technical levels and movements that have shaped the current trading environment.

Market Movements

Last week, sellers positioned themselves against the 50% retracement level of the decline from the late-January high to the early-February low, specifically at 1.19230. The pair reached a high of 1.1928 on Tuesday, with additional swing highs at 1.1926 and 1.1925, which effectively halted any upward momentum.

Despite opportunities for buyers to push the market higher, they failed to do so, leading to a significant rejection that set the stage for a downward slide on Wednesday. This decline pushed the EURUSD below both the 100-hour and 200-hour moving averages. Although there was a brief attempt to rebound, sellers re-emerged near the 38.2% retracement level at 1.18857, reinforcing the downside pressure.

Current Technical Position

As of Friday, the EURUSD was trading between the 100-hour MA above and the 200-hour MA below. A break below the 200-hour MA (1.1858) occurred late yesterday, and the price has remained below this level, currently trading at approximately 1.18237, down about 0.23%.

From a technical standpoint, sellers continue to dominate as long as the price remains below the 100-hour MA (1.18623) and the 200-hour MA (1.1858). For buyers to regain some control, a move back above these levels is essential.

Future Outlook

In the absence of a recovery above the aforementioned moving averages, the path of least resistance appears to be downward. The next downside targets are identified at:

• 1.17648 (February low)
• 1.1778 (multi-touch swing area dating back to early January)

This zone is considered a critical technical battleground; a break below it could lead to a more significant decline in the EURUSD pair.

Conclusion

The current technical bias for the EURUSD remains bearish, with key resistance levels established by the 100-hour and 200-hour moving averages. Traders should monitor these levels closely, as they will dictate the short-term direction of the pair.