EURUSD Technical Analysis Summary

Current Market Overview

The EURUSD currency pair is currently under pressure, experiencing a downward trend that has led to new lows not seen since June 26. This date marked a significant bullish breakout above a key swing area on the daily chart, specifically between the levels of 1.1663 and 1.1691, which had previously acted as strong support and resistance from April to November 2021.

Key Support Levels

As the price action has fallen below the lower edge of the 1.1663–1.1691 range, it indicates a potential shift in market sentiment towards bearishness. The immediate support level to watch is at 1.1663. A break below this level could lead to further declines, with the next support targets identified at:

• 1.1614–1.1629: This area served as a short-term floor earlier in the month.
• 1.15688–1.15780: Another significant support zone to monitor.
• 1.1535: This level corresponds to the 38.2% Fibonacci retracement of the upward move from the April low.

Market Sentiment and Potential Outcomes

If bearish momentum persists, these support levels may attract both sellers looking to capitalize on the downward trend and buyers seeking potential entry points. A decisive break below 1.1663 would serve as a technical warning sign for bullish traders, potentially shifting the near-term bias back towards the downside.

Conversely, if the EURUSD holds above the 1.1663 support level and manages to rebound above 1.1693, it could invalidate the bearish outlook and disappoint sellers anticipating further declines.