EURUSD | Technical Outlook
Market Overview
EURUSD is trading in a corrective pullback phase after failing to sustain gains near recent highs. The pair previously showed bullish momentum, but selling pressure increased after the rejection from higher levels, shifting price into a short-term bearish correction.
Recent price action shows controlled downside movement, not panic selling. Buyers are starting to defend a key support zone, suggesting the market is attempting to stabilize rather than collapse.
Key Resistance Levels
EURUSD is currently capped below a critical resistance area:
1.1730 – 1.1750
This zone represents:
- The breakdown area from the recent selloff
- Short-term moving averages acting as dynamic resistance
A sustained break above 1.1750 would indicate:
- A recovery moves toward 1.1785
- Potential extension to 1.1820 if momentum improves
As long as price remains below this resistance, upside moves are considered corrective.
Key Support Levels
Immediate support is located at:
1.1700 – 1.1685
This area has acted as a short-term demand zone where buyers are attempting to slow the decline.
If this support fails, downside pressure could extend toward:
- 1.1650
- 1.1620 (key daily structure support)
A clear break below 1.1685 would confirm continuation of the bearish correction.
Expectations
Bullish Scenario (Recovery Attempt)
If EURUSD holds above 1.1685 and reclaims 1.1750, the pair could enter a recovery phase targeting:
- 1.1785
- 1.1820
This scenario requires steady buying and sustained closes above resistance.
Bearish Scenario (Continuation Risk)
Failure to regain 1.1750, followed by a breakdown below 1.1685, would likely resume selling pressure toward:
- 1.1650
- 1.1620
This remains the preferred scenario while price trades below key resistance.
Overall Outlook
EURUSD remains in a short-term corrective structure following rejection from recent highs. While selling pressure has eased, the pair has not yet confirmed a bullish reversal.
Price action around 1.1685 support and 1.1750 resistance will define the next directional move. Until a clear breakout occurs, the market is likely to remain range-bound with a bearish bias.
