Title: EUR/USD Faces Renewed Bearish Pressure Near 1.1660 Resistance
Original article by Martin Lee
Adapted and expanded for educational and informational purposes
The EUR/USD currency pair has once again attracted market attention as fresh bearish signals emerge near the psychological resistance level of 1.1660. After a brief recovery attempt from recent lows, sellers have stepped back into the market, reinforcing medium-term bearish sentiment. The euro’s inability to maintain gains against the US dollar underlines broader macroeconomic challenges facing the eurozone, while the dollar benefits from hawkish Federal Reserve expectations and comparative economic resilience.
This article provides a comprehensive look at the latest price action, technical indicators, and fundamental influences shaping the EUR/USD trajectory. We examine key resistance and support levels, investor sentiment, and market-moving events, ensuring traders have the insights needed for informed decision-making.
Overview of Recent Price Action
Over the past several trading sessions, the EUR/USD pair has hovered in a narrow range after testing the 1.1660 resistance zone. This level has become a significant technical barrier. Although the pair made multiple attempts to break out, the lack of momentum and upside confirmation pointed to waning bullish strength.
– The pair peaked just under 1.1660 before retreating.
– Selling pressure increased once again, erasing intraday gains.
– A strong resistance ceiling at 1.1660 is now being reinforced.
– Traders are growing cautious, unsure whether EUR/USD can mount a sustainable rally.
The repeated failure to close above the 1.1660 level has turned market attention to the downside, prompting technical analysts to revisit lower support zones and reevaluate bear scenarios.
Key Technical Indicators
Technical tools provide further clarity on EUR/USD’s recent performance and what may lie ahead. Several widely-used indicators show a bearish setup, especially across shorter timeframes. Here’s a breakdown:
– 100-Period Moving Average: The pair remains under the 100-period moving average on the 4-hour chart, suggesting downward bias and reinforcing resistance.
– Relative Strength Index (RSI): RSI readings have slipped below the 50-neutral mark, indicating that selling momentum might be picking up after a brief pause.
– MACD Indicator: The Moving Average Convergence Divergence line crossed below its signal line, hinting at further downside potential in the short-term.
– Fibonacci Retracement Levels: The 38.2 percent Fib retracement of the decline from 1.1900 to recent lows around 1.1500 aligns with the 1.1660 resistance, strengthening the technical rejection zone.
With these indicators pointing toward continued bearish sentiment in the near term, traders are increasingly cautious about any long positions unless the pair convincingly breaks above 1.1660 and holds ground.
Resistance and Support Zones to Watch
Understanding the levels of support and resistance is essential for predicting short-term price behavior. EUR/USD is currently trapped in a defined range, with major barriers overhead and important support layers below.
Key resistance levels:
– 1.1660: Immediate resistance and recent rejection point.
– 1.1700: A psychological barrier and potential stop-loss cluster for short positions.
– 1.1750-1.1800: Resistance from mid-September price activity; breaking above this region would need a major shift in sentiment.
Key support levels:
– 1.1580: Minor support, previously tested several times during September.
– 1.1530: Strong support from multiple recent bounces; breach signals retesting of yearly lows.
– 1.1490: Year-to-date low; a decisive break would confirm extended downside momentum and renew medium-term bearish trends.
Traders and investors should monitor price behavior near these technical levels for reversal signals or trend continuation clues. Engaging in trades within the range may lead to false signals unless confirmed by volume and candlestick formations.
Fundamental Drivers Behind the Sell-Off
Aside from technicals, fundamental factors are playing a pivotal role
Read more on EUR/USD trading.