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The EUR/USD pair has experienced a significant decline after breaking below critical technical support levels, including the 200-day moving average and the 38.2% retracement of the rally from the February 12 low. These levels converged near 1.16806, and the failure to hold above this zone allowed sellers to dominate the market. The price subsequently dropped to a session low of 1.16159 after breaching a swing area between 1.16377 and 1.16464. Corrective rebounds have stalled at key resistance levels, such as 1.1655 and 1.16377, reinforcing the bearish momentum. The inability of buyers to reclaim these levels has kept sellers in control, maintaining a strong downside bias.
For traders, the breakdown below 1.16806 and subsequent support zones signals a continuation of the bearish trend. Key resistance levels at 1.1655 and 1.16377 now act as critical barriers for buyers. A sustained move above these levels could shift the balance, but until then, the pair is likely to remain under downward pressure. The 200-day moving average and Fibonacci retracement levels remain pivotal for technical analysis, offering clear entry and exit points for position management.
The ongoing bearish control over EUR/USD has implications for forex traders, particularly those with short positions. The next key target for sellers lies near 1.16159, with a potential test of lower support levels if the trend persists. Traders should monitor the 1.16377-1.16464 zone for any signs of a reversal. A breakdown below 1.16159 could accelerate the decline toward 1.1580, while a successful rebound above 1.1655 might signal a temporary pause in the downtrend.
