EUR/USD Technical Analysis: Looks heavy after strong rejection above key hurdle

Wednesday's candle is signaling buyer exhaustion above key resistance.
EUR/USD is likely to test dip demand with a drop to 1.1050.

Omkar Godbole FXStreet Contributor

EUR/USD is looking south, having faced strong rejection above key resistance at 1.1097 in the overnight trade.

The pair clocked a high of 1.1116 during the US trading hours only to close Wednesday with marginal losses at 1.1078.

Essentially, the pair created a candle with a long upper shadow, signaling buyer exhaustion above the bearish lower high of 1.1097 created on Nov. 21. The pair is now likely to test dip demand with a drop to 1.1050 – more so, as the MACD histogram on the 4-hour chart has crossed below zero. Currently, EUR/USD is sidelined around 1.1080.

The recent lows below 1.10 could come into play if the pair finds acceptance below 1.1066 (Wednesday's low), confirming a bearish reversal. On the flip side, a convincing close above 1.1097 is needed to invalidate the lower highs set up and confirm a bullish reversal.

Daily chart

Trend: Bearish

Technical levels

EUR/USD

Overview
Today last price	1.1082
Today Daily Change	0.0003
Today Daily Change %	0.03
Today daily open	1.1079

Trends
Daily SMA20	1.104
Daily SMA50	1.1047
Daily SMA100	1.1071
Daily SMA200	1.1161

Levels
Previous Daily High	1.1116
Previous Daily Low	1.1066
Previous Weekly High	1.1034
Previous Weekly Low	1.0981
Previous Monthly High	1.1176
Previous Monthly Low	1.0981
Daily Fibonacci 38.2%	1.1086
Daily Fibonacci 61.8%	1.1097
Daily Pivot Point S1	1.1059
Daily Pivot Point S2	1.1038
Daily Pivot Point S3	1.1009
Daily Pivot Point R1	1.1108
Daily Pivot Point R2	1.1137
Daily Pivot Point R3	1.1158

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold meets contention near $4,420…for now

Gold extends its recovery past the $4,500 mark per troy ounce on Thursday. The yellow metal’s advance comes amid the resurgence of some selling interest around the, improving risk sentiment, and declining US Treasury yields across the curve.

Bitcoin’s massive storm is back: Why the sell-off is far from over

Bitcoin price action over the last few weeks has felt less like a normal, healthy correction and more like a slow grinding crash that continues to wreak havoc on holdings and trading accounts. And everything suggests that the dramatic crash isn’t over.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.