EUR/USD: Support Breakdown Confirms Bearish Continuation
FX:EURUSD is currently trading within a broader descending channel, respecting a long-term bearish market structure despite multiple recovery attempts throughout the year.
On the left side of the chart, price established a major swing high before transitioning into a sequence of lower highs and lower lows, reinforcing the dominant bearish trend. More recently, the market formed a lower high (LH) beneath channel resistance, signaling continued seller control.
Recently, price broke below a key support zone that had previously acted as a reaction area multiple times. The breakdown occurred near channel resistance rejection, further strengthening the bearish outlook.
📆 On MTF Alignment: HTF – W1 View
The support breakdown aligns with the broader descending channel structure on the Weekly timeframe. Price remains below key moving averages while respecting bearish market structure, suggesting the recent consolidation was a pause within the larger downtrend rather than a reversal.
📝 Key Confluences:
🔻 Confirmed breakdown of key support zone
🔻 Lower high formation beneath channel resistance
🔻 Price trading below MA 20 and MA 50 with fresh MA 20/50 bearish crossover
🔻 RSI approaching oversold territory, reflecting strong bearish momentum
🔻 Continued respect of the descending channel structure on MTF
We've now seen bearish continuation confirmed on the Daily timeframe, with momentum favoring further downside expansion.
📉 Bias: Bearish
As long as price remains below the broken support zone and fails to reclaim it, the expectation is continuation towards:
◘ Mid-channel support region
◘ Lower channel boundary around the 1.1200–1.1100 region
📌 Any pullbacks into the broken support zone or moving averages could offer sell opportunities, not buy opportunities.
⚠️ Invalidation:
A strong reclaim above the broken support zone, followed by acceptance back inside the previous range, would weaken this bearish outlook.
Bottom Line:
This remains a bearish market structure. The recent support breakdown reinforces the broader downtrend, and unless buyers reclaim key levels quickly, the path of least resistance remains to the downside.
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