📉 Trade Setup: Bearish Signal Developing on EURUSD
Fundamental Outlook for EURUSD
In the current trading session, the EURUSD pair is extending its decline, reaching a new session low as market sentiment shifts following the Fed's dovish stance. Federal Reserve Chair Jerome Powell's recent remarks have significantly impacted USD strength, with the market now pricing in an 85% probability for a September rate cut. This weakening of the greenback has led to a repricing of interest rates, with expectations for a total of 54 basis points of easing by year-end. Meanwhile, the Euro remains relatively stable, supported by the recent US-EU trade deal and a neutral stance from the ECB, which has priced in only minimal rate cuts. The confluence of the 200-hour moving average at 1.16674 and the 61.8% retracement of the July high at 1.16615, along with the 100-hour moving average at 1.16522, forms a critical support zone for EURUSD. A break below this level could signal further downside momentum, potentially targeting the next support levels around 1.1660 and 1.1590. The upcoming US Non-Farm Payrolls (NFP) report will be crucial, as strong data could temper expectations for a rate cut and provide the USD with a much-needed rebound. For traders closely following the EURUSD Trading Forecast, this mixture of technical and fundamental pressures creates a complex environment, requiring careful monitoring of both economic data releases and technical levels.
The EURUSD Technical Analysis points to a near-term bearish bias with the price edging closer to key support levels. The pair’s recent rally to the major trendline around 1.1750 has stalled, suggesting potential resistance at this level. On the hourly chart, a minor counter-trendline defines the pullback, where intraday buyers may attempt to defend the downside. However, a decisive break below the cluster of support around 1.1660-1.1650 could accelerate the decline toward the 1.1600 psychological level. Conversely, bullish traders will be watching for a resumption of the upward trend if the price can reclaim the 1.1700-1.1710 area. Given the current market conditions, the suggested EURUSD trade signal—A trade entry at 1.16256, a take-profit at 1.14320, and a stop-loss at 1.17430— aligns with the technical outlook. The pair's behavior around these levels will be critical, and any changes in Fed policy expectations or Eurozone inflation data could further influence its trajectory. For real-time updates, traders may refer to Investing.com’s EURUSD analysis for additional insights and market sentiment.
Breakout Conditions & Technical Setup for EURUSD
For risk-managed execution, we recommend placing a conditional entry with well-defined stop-loss at 1.17430 and take-profit above/below based on your strategy. Always confirm signals with personal chart analysis before acting.
Price action recently formed a swing high (top) at 1.17430. Since then, the market has reversed and is now trading near OVERBOUGHT RSI levels, often seen as a signal of potential downside momentum.
✅EURUSD Signal Info – Entry Price, TP and SL Guidelines
- Symbol: EURUSD
- Trade Type: Sell Signal
- Entry Level: 1.16256 or better
- Take Profit (TP): 1.14320
- Risk Level (SL): 1.17430
- Risk Management: 0.5% to 1% of equity per trade
- Issued At: 2025.08.26 04:10
✅ Entry Conditions & Risk Notes for EURUSD
- Use this signal with our scalping strategy or swing trading setup depending on your time horizon.
- For confirmation, wait for a candle close above/below key support or resistance levels on the EURUSD chart.
- Ensure tight spreads and fast execution – ideal for short-term trades like EURUSD.
- This signal is best suited for scalpers and intraday traders.
- Use a stop-limit order if volatility spikes around key levels.
- This RSI trading signal works best when there's no overlapping economic calendar events.
"Great traders think in probabilities, not certainties."
Note: This EURUSD trading strategy is part of our RSI-based system. Always backtest and use proper risk management before live trading.
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