Strong Bearish Pressure Below EMAs

7 days agoThe EUR/USD pair is currently in a deep downtrend as seen on the 4-hour chart, with the EMA 34 having crossed below the EMA 89, which is not only a sign of a downtrend but also suggests that the selling may not be over yet. The price remaining below both EMAs for several consecutive sessions further reinforces the current downtrend and the lack of solidity in the Euro’s recovery efforts against the USD.

The price is approaching the important support level at 1.1038, which has served as the basis for previous rallies. A break below this level could push the price further down to 1.09826, where a new low could be set. On the other hand, if a recovery emerges, the pair will face strong resistance at the current EMAs, which could absorb buying pressure and become a selling point for traders expecting a further downside correction.