**EUR/USD Faces Renewed Downward Pressure: A Technical Perspective**
*Original analysis credited to Economies.com, published on July 15, 2025.*
The EUR/USD currency pair experienced renewed bearish momentum, reinforcing its ongoing downward trend within a wider bearish framework. Recent price action suggests that the pair is facing considerable selling pressure near current levels, further supporting expectations of additional declines in the near term.
Technical indicators and price behavior are pointing to instability in Euro strength against the US Dollar, particularly after recent economic data reignited concerns about Eurozone growth prospects. In contrast, persistent strength in the US Dollar—bolstered by a hawkish Federal Reserve stance—continues to weigh heavily on the single currency.
Below, we break down in detail the technical landscape, key price levels, and potential scenarios traders and analysts should monitor closely based on the latest price action.
EUR/USD Technical Overview
– The EUR/USD pair moved lower early in the European session following subdued bullish attempts.
– Failure to maintain levels above 1.0900 suggests a renewed intent by sellers to dominate price action.
– The price currently moves within a descending price channel, characterized by lower highs and lower lows across both intraday and longer timeframes.
– Short-term momentum indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), confirm growing negative momentum.
– A breach below key support at 1.0835 could accelerate the decline toward lower technical floors.
Key Support and Resistance Levels
Support Zones:
– 1.0835: A critical short-term horizontal support level. A sustained break below this zone would likely trigger sharper declines.
– 1.0780: A psychological round number; acts as minor support in previous consolidation zones.
– 1.0725: Represents a deeper retracement level that coincides with historical demand areas during earlier bullish reversals.
Resistance Areas:
– 1.0900: Immediate resistance from recent failed bullish attempts; also aligns with short-term moving averages.
– 1.0955: A historically significant level combining resistance from previous price peaks and technical breakout attempts.
– 1.1000: A major psychological threshold that could temper bullish rallies if regained.
Trend Analysis and Price Behavior
– The EUR/USD is currently trading below the 50-day and 100-day Simple Moving Averages (SMA), with both moving averages sloping downward, a clear indicator of prevailing bearish momentum.
– The failure to break and hold above 1.0900 shifted short-term sentiment downward. This level now acts as both psychological and technical resistance.
– Lower trading volumes in rebound attempts suggest weakening of bullish conviction.
– The bearish engulfing candlestick pattern, formed on the daily chart, has further empowered sellers, hinting that more downward pressure remains plausible in the coming sessions.
Fibonacci and Retracement Insights
– Based on the major swing low at 1.0660 and the swing high at 1.1015, Fibonacci retracement measurements point to the following key zones:
– 38.2% retracement: 1.0880 (close to current price reaction zone)
– 50.0% retracement: 1.0837 (closely aligned with key support zone)
– 61.8% retracement: 1.0794 (adds confluence with the 1.0780 support region)
– These retracement levels are likely to provide additional zones of support, especially if the pair moves lower throughout the week.
MACD and RSI Indicators
– The MACD histogram has flipped to the negative side, with a downward cross between the signal line and the main MACD line. This confirms that bearish pressure is increasing.
– The RSI indicator is currently near the 40 level on the daily chart, pointing toward a bearish-to-neutral bias. There’s still room before entering oversold territory, which leaves space for further downside without triggering strong buying interest.
Price Action and
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