The currency pair EUR/USD is showing signs of weakness again after previously moving in a strong bullish phase. However, the upward momentum is still being held back by a key resistance area around 1.16400 to 1.16700. The failure to break through this resistance zone indicates that selling pressure is still dominant, especially on the higher timeframes which are now showing a clearer bearish structure. On the higher timeframe, price movements are facing significant rejection at the 1.16400 resistance area. This level acts as both a psychological and technical barrier that has halted the previous upward momentum. After touching this area, EUR/USD has started forming a series of bearish candles indicating profit-taking actions and new selling pressure from market participants. This situation suggests that buyers still lack the strength to push prices higher. Meanwhile, on the lower timeframe, bearish dominance remains strong. Prices are currently hovering around the 1.15200 support area, which is a crucial level in determining the next direction. The continuous selling pressure indicates that the market is still in a downward correction phase after failing to sustain the previous bullish momentum. As long as prices remain below the 1.16400 resistance, the likelihood of a continuation of the bearish trend is higher than a reversal scenario. The 1.16700 resistance area is a crucial point in the current market structure. Increased selling volume from this level triggers a change in short to medium-term sentiment. The bearish reaction from this area strengthens the assumption that market participants consider this zone as a high valuation area for selling actions. As a result, the pressure on EUR/USD increases, pushing prices back towards the support area. From an overall trend perspective, especially on the daily timeframe, price structure is showing indications of a shift from bullish to bearish. Some technical signals supporting this scenario include the failure to make new higher highs above the main resistance, rejection at the price peak area, and a weakening of the previous bullish momentum. These conditions often signal the beginning of a distribution phase before further declines. Furthermore, if the 1.15200 support is convincingly breached, selling pressure could increase further. A breakthrough of support usually confirms that sellers are still in control of the market. In this scenario, EUR/USD is likely to continue weakening towards the next support area ranging from 1.14500 to 1.14000. The 1.14000 level itself is a relevant bearish target as it is a significant technical support based on previous price movements. In terms of risk management, market participants need to consider the possibility of a short-term pullback or upward correction before prices resume their decline. As long as this correction remains below the 1.16400 to 1.16700 resistance, the bearish bias can still be considered valid. However, if prices manage to break back above and hold above this resistance area, the bearish scenario could weaken, opening up opportunities for a return to a bullish trend. Overall, EUR/USD is currently still dominated by bearish pressure on both higher and lower timeframes. The failure to break through the 1.16400–1.16700 resistance has been a key factor triggering a shift in market sentiment. With prices testing the 1.15200 support and the daily structure showing signs of weakness, the potential for downward movement remains dominant in the upcoming trading sessions. As long as the main resistance holds, the target for a decline towards the 1.14000 support area remains the most likely scenario based on the current technical conditions.
