Hello everyone,
EURUSD has suffered a significant breakdown on the H4 timeframe after losing the 1.1600–1.1580 support zone and falling sharply toward 1.1528. The move came with a clear expansion in bearish momentum, confirming that sellers have regained control of the market.
What catches my attention is the way price sliced through both EMAs without meaningful buying support. The short EMA is now turning lower again, while the long EMA remains firmly bearish above price. This is typically a sign that the recent consolidation phase has resolved in favor of the prevailing downtrend.
The stronger-than-expected US labor data remains the main catalyst behind USD strength. Markets have scaled back expectations for aggressive Fed easing, while Treasury yields continue to support the dollar. As a result, EURUSD remains under pressure despite expectations that the ECB could stay relatively cautious on future rate cuts.
From a technical perspective, the former support around 1.1580–1.1600 has now become a key resistance zone. As long as price remains below this area, rallies may continue to attract sellers.
Overall, I remain bearish while EURUSD trades below 1.1580. The latest breakdown suggests the market is targeting lower liquidity zones before any meaningful recovery can develop.
EURUSD has suffered a significant breakdown on the H4 timeframe after losing the 1.1600–1.1580 support zone and falling sharply toward 1.1528. The move came with a clear expansion in bearish momentum, confirming that sellers have regained control of the market.
What catches my attention is the way price sliced through both EMAs without meaningful buying support. The short EMA is now turning lower again, while the long EMA remains firmly bearish above price. This is typically a sign that the recent consolidation phase has resolved in favor of the prevailing downtrend.
The stronger-than-expected US labor data remains the main catalyst behind USD strength. Markets have scaled back expectations for aggressive Fed easing, while Treasury yields continue to support the dollar. As a result, EURUSD remains under pressure despite expectations that the ECB could stay relatively cautious on future rate cuts.
From a technical perspective, the former support around 1.1580–1.1600 has now become a key resistance zone. As long as price remains below this area, rallies may continue to attract sellers.
Overall, I remain bearish while EURUSD trades below 1.1580. The latest breakdown suggests the market is targeting lower liquidity zones before any meaningful recovery can develop.
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Join our group and unlock real-time Forex, gold, and crypto signals — sharp insights, fast alerts, and opportunities you don’t want to miss.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.