EURUSD Technical Analysis: Correction and Resistance

Author: Greg Michalowski

Date: 21 hours ago

Market Overview

The EURUSD currency pair experienced a significant decline earlier in the trading session, reaching new lows for 2026. This downward movement extended the bearish momentum, marking the lowest level since August 2025. The pair broke through two critical support levels from November 2025, specifically the lows of 1.14912 and 1.14687, which had previously provided substantial support.

Price Movements

Following the drop to a session low of 1.14321, buyers entered the market, leading to a corrective rebound. This recovery allowed the EURUSD to rise above the 1.14687 level, reclaiming the November 5 low. However, the upward momentum was short-lived, as the price stalled just below the next resistance level at 1.14912, which corresponds to the November 21 low.

Resistance and Moving Averages

The corrective rally peaked at 1.14893, just shy of the resistance level, before sellers reasserted control. The price subsequently retreated to around 1.14475. The analysis highlights the importance of moving averages, particularly the 200-bar moving average on the 5-minute chart, which sellers have defended effectively. Attempts to break above this moving average have been met with rejection, reinforcing the bearish sentiment in the short term.

Outlook and Key Levels

For the short-term bias to shift towards a bullish outlook, buyers need to push the price above both the 100-bar and 200-bar moving averages and break through the key swing level at 1.14912. A successful breach of this resistance cluster would indicate a weakening of the current bearish structure and could lead to a more substantial corrective move higher. Until such a breakout occurs, sellers remain firmly in control, with the focus on whether the EURUSD can extend its decline to new lows.

Conclusion

The current technical analysis of the EURUSD indicates a struggle between buyers and sellers, with the latter maintaining control below key resistance levels. The market's next moves will depend on the ability of buyers to overcome these resistance points and shift the momentum in their favor.