Don’t Rush to Buy EURUSD – The Bearish Trend Is Speaking Up

Feb 6

EURUSD is currently leaning toward a short-term BEARISH trend, as recent news continues to favor the U.S. dollar over the euro. The ECB has kept interest rates unchanged with a rather cautious tone, while Eurozone data and momentum remain too weak to support a sustainable EUR recovery. In contrast, the USD is still supported by expectations that U.S. interest rates will stay higher for longer, making EURUSD rallies vulnerable to selling pressure.

On the chart, after the strong rally at the end of January, price has entered a corrective phase and is now trading below the Ichimoku cloud. This signals that bullish momentum has faded, and the market is shifting into a “technical rebound within a short-term downtrend”. Recent candles are compressing around the 1.17–1.18 zone, which may look like accumulation, but in reality it is more likely consolidation before a downside break if price fails to clear overhead resistance.

The 1.1840 area stands out as a clear resistance zone (supply confluence + cloud resistance), where selling reactions are highly likely. If price pulls back toward 1.1840 but fails to hold, the higher-probability scenario is a renewed move lower, with an initial focus on 1.1700, and a deeper extension toward 1.1677, in line with the marked targets.

Feb 7

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