⬤ EUR/USD reversed direction at the end of January following a strong rally that stalled near the 1.20 resistance zone. The four-hour chart reveals a clear rejection from this level, followed by a decisive move lower. Recent price action indicates fading bullish momentum as the pair transitioned from an impulsive advance into a corrective phase.
⬤ The chart shows a well-defined supply zone near the highs where aggressive selling pressure emerged. After peaking, EUR/USD formed lower highs and broke below short-term support, confirming a shift in market structure. Price has declined toward the 1.185 region, which now serves as an interim level to watch. Former consolidation zones above current price are acting as resistance, reinforcing bearish control.
⬤ The projected path suggests a possible short-term corrective bounce toward 1.19 before further selling resumes. Below current levels, the next downside target aligns near 1.17, corresponding with prior structural support. This pattern reflects a pullback-and-continuation setup rather than a full trend reversal.
⬤ EUR/USD's price action matters because it's a key benchmark for global currency positioning and dollar demand. Rejection from major resistance often signals sentiment shifts across the forex market. The current structure demonstrates how quickly momentum can flip after an extended rally, with sellers regaining control once higher prices failed to hold. As the pair navigates these technical zones, its movement may offer clues about short-term directional bias in the broader FX landscape.
