EUR/USD Daily Analysis: Bears Target a Break Below Key Psychological Support We continue our analysis of the market situation for the EUR/USD pair, and I will begin this analytical forecast with a detailed assessment of the daily chart, which provides the most critical context for the medium-term trend. The chart reveals that the pairs price action has been contained within a wide, upward-sloping sideways price channel. This specific pattern indicates a period of consolidation where the market has been balancing between bullish and bearish forces, albeit with a slight upward tilt in the overall structure. The EUR/USD pair is currently trading at a pivotal point within this channel, positioned at 1.1599. This specific price level is technically significant because it coincides with the major psychological and round-number level of 1.1600. Such levels often act as strong magnets for price and can serve as formidable barriers or pivot points. The current market behavior suggests that the price is actively attempting to consolidate below this critical 1.1600 threshold. A successful and sustained break below this level would be a clear technical victory for the sellers, indicating that the bearish momentum is overpowering any underlying support and would likely initiate a continuation of the prevailing decline. Should this breakdown be successful, the path for the pair would be projected lower. The bears primary and logical target will be a further decline toward the lower boundary of the wide, flat channel. The projected intersection point for this key support level is identified at approximately the significant round-number level of 1.1500. This price represents not only a major psychological benchmark but also a crucial technical support within the broader chart pattern. From a strategic trading perspective, this setup presents a measurable opportunity. Initiating short positions from the current levels near 1.1599, with a profit target at the 1.1500 support, offers a potential profit of around 100 pips. This favorable risk-to-reward profile is based on the clear technical structure provided by the channels boundaries and the significance of the 1.1600 breakout level, making it a strategically defined trade setup for the near term.
