EURUSD bearish flag breakdown: Will the drop below 1.1400 hold?
Overview: EURUSD has broken below a bearish flag formation and is hovering near the psychological 1.1400 level. Repeated rejections from the 20-day SMA suggest downside pressure remains intact, with a sustained break lower potentially extending the broader downtrend.
Momentum: Technical indicators point to persistent, though not extreme, bearish momentum. The RSI remains below the neutral 50 level, while the stochastics continue to favour the downside.
Bearish Scenario: A drop below 1.1375 could initially expose the recent trough at 1.1325. A sustained break below this level may pave the way towards the late-May 2025 support zone around 1.1210-1.1250.
Risk: A sustained move above the 20-day SMA near 1.1420 would invalidate the bearish breakout scenario and suggest a return to consolidation within the flag pattern.







