EUR/USD Price Analysis: Bears march the bulls back to the edge of the abyss

EUR/USD bears are in control and the price is at the edge of the abyss.
The 50% mean reversion weekly target is vulnerable.

Ross J Burland FXStreet

As per the pre-ECB analysis from Thursday's Asian morning session, EUR/USD Price Analysis: Bears are stalling bullish advances at key resistance, 50% mean reversion eyed, the euro has come under immense selling pressure and moved in on a critical area of price imbalance which leaves the 50% target vulnerable.

EUR/USD weekly chart, prior analysis

The W-formation was spotted on the weekly chart, a reversion pattern that leaves the 50% mean reversion target vulnerable for the time ahead.

EUR/USD live market, weekly, daily & H1 charts

The price extended the correction towards the target as illustrated above.

From a daily perspective, there is an M-formation being formed from Thursday's price action. However, while this too is a reversion pattern, there is a price imbalance between June 1's low and May 20 lows of 1.0532 that the bears are embarking on. Mitigation of this price area, around 80 pips to the downside, could play out over the course of the next sessions if bears stay in control.

From an hourly perspective, the price is testing the mitigation area, but the drop could be ripe for a meanwhile correction:

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY eases from two-week top, hovers near 158.50 amid looming intervention risk

USD/JPY edges lower during the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the currency pair. The downside, however, seems limited as the US Dollar stands firm near its highest level since April 2025, bolstered by the hawkish Fed and geopolitical uncertainties.

Gold struggles above $4.150 as bullish USD and elevated bond yields weigh

Gold remains depressed during the Asian session on Tuesday as elevated US Treasury yields and a hawkish Fed keep the US Dollar near its highest level since April 2025. Adding to this, persistent geopolitical uncertainties stemming from Middle East conflicts continue to underpin the safe-haven buck, which, in turn, is seen as weighing on the bullion. Traders now look to US inflation figures for some impetus ahead of Fed Chair Kevin Warsh's appearance on Friday.

Bitcoin shows bottoming signs despite recent macro pressures

Bitcoin remained range-bound above $82,000 on Monday as upcoming US economic data and onchain indicators weigh on market sentiment. Crypto trading firm QCP Group stated in its Monday report that Bitcoin has maintained a firmer footing a year after the market’s largest single-day liquidation event.

Earnings preview US and Europe: Can the stock market rally continue?

Stocks have been remarkably resilient this year. They have navigated geopolitical turmoil, an energy price spike and surging global bond yields which is rapidly pushing up the cost of borrowing. US blue chip stocks are now in their 4th year of a bull market, however, they now face their toughest test of Q4 so far, the latest earnings updates.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?