**EUR/USD Price Forecast: Euro Struggles Below 1.1600 as Bearish Pressures Persist**
*By TradingNews.com Staff Writer*
*(Original article by Aayush Jindal, rewritten and expanded for clarity and depth)*
The EUR/USD currency pair continues to face headwinds as the euro remains under pressure against the U.S. dollar, staying firmly below the 1.1600 resistance level. Despite occasional attempts to rally, the pair struggles to reclaim key levels as broader market sentiment and shifting fundamentals weigh down the euro. This extended analysis provides insight into the technical and macroeconomic landscape shaping EUR/USD price action and outlines key indicators to watch in the coming sessions.
### Overview
The euro has been steadily weakening against the U.S. dollar in recent weeks, caught between a stronger dollar driven by rate hike expectations and persistent uncertainty in the Eurozone’s economic recovery. The pair’s failure to sustain a move above 1.1600 signals continued bearish momentum as traders push for lower support zones.
While the U.S. economy shows signs of resilience, with strong employment figures and discussions around tapering continuing to support the greenback, the Eurozone is grappling with uneven recovery and fresh inflationary pressure, presenting a challenging environment for euro bulls.
### Recent Price Action and Market Sentiment
The EUR/USD pair made multiple attempts to recover, only to falter near 1.1600. The pair’s struggle at this critical resistance level reflects a lack of bullish conviction, compounded by dollar strength on the back of tightening monetary policy expectations from the Federal Reserve.
– EUR/USD recently attempted an upside correction, recovering modestly from 1.1520 and managing to break through 1.1550 and even near 1.1580.
– Despite this brief rally, the 1.1600 zone remained a significant cap on upward momentum.
– The rise coincided with a slight pullback in U.S. dollar strength, offering temporary relief to the euro. However, fundamental drivers kept the pair under pressure.
Investors are increasingly cautious, awaiting key data from both economies. U.S. economic indicators are being closely tracked to confirm the Fed’s timeline for interest rate hikes, while the Eurozone’s prospects remain uncertain due to energy concerns, sluggish growth, and supply chain disruptions.
### Technical Analysis of EUR/USD
From a technical perspective, the EUR/USD pair is trending below major moving averages, suggesting that the bears are still in control. After being rejected close to the 1.1600 mark, the pair shows signs of another leg lower unless a catalyst propels it above this resistance.
**Key technical observations:**
– The pair remains well below the 100-hour and 200-hour Simple Moving Averages (SMA), reinforcing the ongoing bearish bias.
– A clearly defined bearish trend line is forming on the hourly chart, with resistance near the 1.1580 zone.
– Immediate resistance lies near 1.1580, with the more crucial level at 1.1600. A daily close above this would be necessary to consider a stronger upside push.
**Support Levels to Watch:**
– 1.1520: A recent low that briefly held before the most recent bounce.
– 1.1500: A psychological level and one of the last minor support zones before more significant declines.
– 1.1450: If bearish momentum accelerates, this level could be tested next.
**Resistance Levels to Watch:**
– 1.1580: Near-term barrier aligned with the bearish trend line.
– 1.1600: Clearly the most significant resistance that the bulls need to breach to indicate strength.
– 1.1640: The 200-hour moving average is trending toward this area and could serve as a barrier if 1.1600 is surpassed.
### Broader Economic Context
The euro’s weakness is not solely the product of technical selling
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