Descending Channel Pattern Forming in EUR/USD

The EUR/USD pair is currently trading within a well-defined descending channel on the 1-hour timeframe, as shown in the chart. The pair has been making consistent lower highs and lower lows, indicating a bearish trend. The red downward-sloping resistance line has been respected multiple times, while the green support line continues to act as a buying zone for bulls.

The resistance trendline has been tested five times (marked with red arrows), confirming strong selling pressure.

The support line has held three key touches (green arrows), suggesting buyers are still defending this level.

A breakout below the support zone could lead to further downside, while a reversal or breakout above resistance may trigger bullish momentum.

Traders should watch for volume confirmation and breakout direction before entering new positions.

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