EURUSD continues to press lower, steadily updating its lows as the shift in the fundamental backdrop and uptrend reversal gain momentum. The price is sliding downward in a calm, measured fashion—a hallmark of a strong, persistent trend. The absence of sharp pullbacks, especially following the sharp drop from the distribution phase, underscores the strength of the current bearish move.
At present, EURUSD is approaching a critical liquidity zone that could introduce a surge in volume and potentially trigger a brief corrective bounce. This liquidity influx might spark a short-lived rebound to the 1.095 level, which aligns with the 0.7 Fibonacci retracement, offering a potential breather for the pair. On the daily chart, we observe the fallout from a failed breakout—a classic false breakout scenario. This has led to the formation of a robust distribution phase, adding further weight to the bearish outlook.
Key liquidity pockets are visible at the 1.077 - 1.067 levels, making them the probable targets for this downward move. As EURUSD approaches these levels, the likelihood of increased selling pressure grows, with further downside potential looming on the horizon.
**Resistance levels**:
- 1.095 (minor resistance and possible retracement level)
- 1.100 (psychological resistance zone)
**Support levels**:
- 1.089 (short-term support, potential for consolidation here)
- 1.077 (next major support and liquidity target)
With no significant news events scheduled until mid-week, the fundamental backdrop remains unchanged for now. This lull in news flow could lead to a brief period of consolidation around the 1.089 level. However, given the overall technical and fundamental picture, the likelihood of further declines after a break below this support is high.
The market’s current structure points to a continuation of the bearish trend. The steady pace of the decline without major pullbacks reflects the sellers' dominance. A break below 1.089 would likely pave the way for deeper losses, as the price gravitates toward the next major support zone around 1.077. Liquidity and market sentiment both suggest that the bearish momentum remains intact, and any attempts at a corrective bounce may be short-lived unless a new catalyst emerges.
In summary, EURUSD remains firmly in the grip of bears. With the market poised to test key liquidity levels and no immediate change in the macroeconomic environment, the downtrend is expected to persist. A break below the current support will likely accelerate selling pressure, driving the pair toward the 1.077 - 1.067 zone. Any corrective moves should be viewed as opportunities to rejoin the downtrend unless the market structure shows clear signs of reversal.