EUR/USD Technical Outlook: Momentum Fades as Resistance Levels Hold

The EUR/USD currency pair is beginning to show signs of exhaustion, with momentum indicators suggesting a potential pullback in the short term. As of now, the pair is trading around $1.1365, having encountered strong resistance near $1.1572—a key level that remains unbroken.

Before reaching that upper resistance, EUR/USD also faces selling pressure near $1.1473, making it a crucial zone to watch. A failure to break above these resistance levels could trigger a wave of short-term profit-taking or renewed bearish sentiment.

Key Resistance and Support Levels to Watch

• Immediate Resistance: $1.1473

• Major Resistance: $1.1572 (recent high)

• Support Zone: $1.1263 – $1.1309

• Trendline Support (similar to March pullback): Around $1.1200

Only a confirmed breakout above the $1.1572 high would suggest a continuation of the uptrend in the near term. Otherwise, the setup appears vulnerable to a possible retracement, similar to the one observed in March.

Momentum Indicators Flash Bearish Signals

A deeper look into technical indicators reveals growing bearish momentum:

• The MACD histogram is turning negative once again.

• The MACD line has crossed below the signal line, a bearish crossover that often precedes short-term declines in forex trading.

While this doesn't guarantee a full reversal, it does increase the likelihood of selling pressure as traders reassess long positions.

Summary

The EUR/USD outlook remains cautiously bullish in the long term, but current resistance levels and weakening momentum suggest a potential retracement in the short term. Traders should closely monitor the MACD signal, price action around $1.1473, and the key support zone near $1.1263–$1.1309 for clues on the next major move.