EURUSD bearish flag breakdown: Will the drop below 1.1400 hold?

EURUSD breaks the bearish flag pattern. A drop under 1.1375 eyes 1.1325 and 1.1210-1.1250. Rebound above 1.1420 changes the view as momentum slows.
XM Group | 59 days ago

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.

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