FX.co ★ glow_with_mouchi | EUR/USD

i see the daily chart of EUR/USD is currently showing a market that remains under clear bearish pressure, although we may be approaching an area where a short-term reaction could occur.Price is trading around the 1.16 region, which has recently acted as a support zone. Over the past several weeks, the pair has been forming a sequence of lower highs, indicating that sellers continue to control the broader structure. Each attempt at recovery has been relatively weak and quickly sold into, which reinforces the idea that the prevailing trend on the daily timeframe is still bearish.One element that stands out to me is the behavior around the moving average. The 10-period moving average on the daily chart has rolled over and is now sloping downward. Price recently broke below it and has struggled to regain position above it. In my experience, when price remains below a declining short-term moving average on the daily timeframe, it often signals that momentum favors continuation to the downside unless a strong bullish catalyst appears.Looking at momentum indicators, the RSI is currently hovering around the mid-30s. This is not yet deeply oversold, but it does show that bearish momentum has been dominant recently. What I find interesting here is that RSI is approaching the lower zone where buyers sometimes begin to step in. However, at the moment I do not see any strong bullish divergence forming, so I’m not convinced that a major reversal is imminent. The ADX reading is another factor that supports the bearish narrative. With ADX rising above the mid-30 level, it suggests that the trend strength is relatively solid. In trending environments like this, counter-trend trades can become risky because pullbacks tend to be shallow and temporary. The directional movement components also appear to favor sellers, confirming that the downside move still has energy behind it.From a pure price-action standpoint, the most important level I’m watching is the support area around 1.1580–1.1600. This zone has already been tested and defended, but repeated tests of support often weaken it. If the pair closes decisively below this level on the daily chart, I would expect the next wave of selling to accelerate, potentially targeting the next psychological area closer to the mid-1.14 region. On the other hand, for the bearish outlook to weaken, I would want to see a daily close back above the recent minor resistance area around 1.17. That would suggest that buyers are regaining some control and could trigger a deeper corrective move toward the 1.1750–1.1800 zone.For now, my bias remains cautiously bearish while price trades below the short-term moving average and continues to respect the pattern of lower highs. I’m not aggressively chasing the downside at current levels, but I do see rallies as potential selling opportunities unless the market structure clearly shifts.In summary, the daily chart still favors sellers overall, but we are approaching a key support region that could produce a temporary bounce before the next directional move develops.