EUR/USD – Short-term Downside Pressure at $1.1626 Resistance

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Hello everyone,

EUR/USD is currently facing a strong resistance area at $1.1626, where the supply FVG and the edge of the Kumo cloud converge, forming a notable technical wall. Recent candlesticks with short bodies and long wicks, alongside weakening volume, indicate that buying momentum is fading while sellers are taking control. The Ichimoku Kumo sitting above price reinforces the bearish signal, and other technical indicators also do not support a breakout. If price continues to be rejected at $1.1626, the downside correction could drag EUR/USD back toward the support levels at $1.1600 and $1.1575. In addition, today’s release of the U.S. PCE data will be closely watched – if it comes in higher than expected, the likelihood of the Fed maintaining a tight policy stance could strengthen the dollar, adding further downside pressure on the pair.

What do you think of this scenario? Will EUR/USD continue to fall, or surprise with a rebound from this resistance zone?

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