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Euro / U.S. Dollar
Short
Updated

EURUSD – Recovery losing steam, correction risk is rising

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After rebounding from the trendline support, EURUSD is now approaching the key resistance area around 1.17500 — a zone that has historically triggered multiple rejections. However, with French and German PMI figures coming in below expectations and the ECB holding rates steady without providing any fresh policy guidance, the euro lacks the momentum for a sustained move higher.

On the H4 chart, price action is showing signs of exhaustion as it tests resistance. If buyers fail to break through convincingly, a pullback toward the 1.16800 support zone — or even deeper toward 1.16400 — becomes increasingly likely.

Preferred strategy: Watch for bearish rejection patterns near 1.17500. If confirmed, this could be a favorable opportunity to initiate short positions in anticipation of a correction.
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