EURUSD remains under pressure as the pair continues to print lower swing highs and lower swing lows, confirming that the broader structure is leaning to the downside. This price behavior suggests that the market is currently trading within a developing downtrend.
On the 4-hour timeframe, the pair may already be entering wave three or wave C of the larger corrective structure. Price has recently declined into the 1.1580–1.1600 support area that we previously discussed as an important zone to watch.
EURUSD 4H Chart
Another important technical development is the break of the trend line support that formed a potential base channel. This breakdown signals that the latest rally was likely just a corrective move, potentially representing subwave four within the broader bearish structure.
With this in mind, the current pause in price action could simply be consolidation before another leg lower. Immediate resistance is seen around the 1.1670 level, which may act as a barrier if the pair attempts a short-term recovery.
However, if EURUSD unexpectedly rallies and breaks back above 1.1743, the bearish structure would weaken and the pair would move back into a neutral zone, suggesting that the downside scenario may need to be reconsidered.
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