EUR/USD has snapped a key confluence zone after rejecting the 78.6% Fibonacci retracement level near 1.1745. The latest daily candle shows a sharp bearish engulfing bar that sliced below both the ascending trendline and the 50-day SMA (1.1565), signaling a potential trend reversal or deeper correction.
This breakdown follows a multi-week uptrend, and momentum indicators are starting to confirm the bearish shift:
MACD is showing a bearish crossover below the signal line.
RSI has dropped below 50 (currently around 45.8), reflecting weakening bullish momentum.
The pair has now settled just above horizontal support near 1.1586. A decisive close below this level could open the door toward the next support zone around 1.1450–1.1500, where prior consolidation and the rising 200-day SMA (1.0929) may act as stronger demand.
Bulls will need to reclaim the 1.1650–1.1700 zone and see a bullish crossover on momentum indicators to regain control. Until then, the path of least resistance appears tilted to the downside, especially with trendline and Fib support now breached.
Bias: Bearish while below 1.1700. Watch for continuation lower if 1.1586 fails to hold.
-MW
This breakdown follows a multi-week uptrend, and momentum indicators are starting to confirm the bearish shift:
MACD is showing a bearish crossover below the signal line.
RSI has dropped below 50 (currently around 45.8), reflecting weakening bullish momentum.
The pair has now settled just above horizontal support near 1.1586. A decisive close below this level could open the door toward the next support zone around 1.1450–1.1500, where prior consolidation and the rising 200-day SMA (1.0929) may act as stronger demand.
Bulls will need to reclaim the 1.1650–1.1700 zone and see a bullish crossover on momentum indicators to regain control. Until then, the path of least resistance appears tilted to the downside, especially with trendline and Fib support now breached.
Bias: Bearish while below 1.1700. Watch for continuation lower if 1.1586 fails to hold.
-MW
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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.