EURUSD – Trapped in a Falling Channel

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Hello everyone, great to see you again in today’s market discussion!

At the moment, EURUSD is trading around 1.1620, continuing to follow its short-term bearish trend within a well-defined descending channel. After a brief rebound to retest the upper resistance zone near 1.1700, the pair failed to break through and is now showing renewed signs of weakness. Both the EMA 34 and EMA 89 are still sloping downward, confirming that bearish momentum remains dominant.

From a fundamental perspective, the euro continues to face pressure from weak economic data and a slower pace of monetary tightening compared to the Federal Reserve. Meanwhile, the U.S. dollar remains supported by high Treasury yields, attracting capital flows into the greenback.

The preferred scenario suggests that price could move back down to retest the 1.1550 support zone, a level where the market previously showed strong reactions. Let’s watch how the pair behaves around this area to look for potential opportunities.

What about you — do you think EURUSD will recover soon, or will it keep falling further? Share your thoughts in the comments below!