EUR/USD: Sideways Trend with Dominant Downward PressureEUR/USD continues to decline for the fifth consecutive day, trading below 1.0500, as the ECB’s 25-basis-point rate cut weakens the Euro, while the USD maintains its strength due to stable market sentiment.
On the 1-hour chart, EUR/USD is moving within a clearly defined downward channel, with lower highs and lower lows. The current price is below the EMA 34 and EMA 89 at 1.0491 and 1.0511, reinforcing the bearish pressure. The nearest support lies in the 1.0450-1.0440 range, where the price may temporarily find buying interest before continuing its decline. If this level is breached, the next target would be 1.0420.
Conversely, the key resistance level is at 1.0498, aligned with the upper boundary of the descending channel. A breakout above this level could trigger a short-term rebound, although this scenario seems less likely under the current conditions. Traders should closely monitor key support and resistance levels to optimize their strategies, as the dominant outlook remains bearish.
