EURUSD Technical Analysis: Bearish ABC Structure Targets 1.11190

EURUSD Remains Under Pressure Within a Descending Channel

EURUSD continues to trade within a well-defined descending channel on the daily timeframe, indicating that bearish pressure remains dominant despite several corrective rallies.

After failing to sustain gains above the recent highs, the pair has resumed its downward trajectory, suggesting that sellers remain in control of the broader market structure.

Bearish ABC Correction Appears To Be Developing

The current price structure suggests that EURUSD may be forming a larger ABC corrective pattern.

Wave (A)

The initial decline established the first bearish leg and confirmed a shift in momentum away from the previous uptrend.

Wave (B)

Price is currently trading within a corrective phase, represented by Wave (B). This recovery remains constrained beneath the descending trendline resistance, limiting bullish potential.

Wave (C)

If the bearish structure remains valid, Wave (C) could develop toward the lower support zone near 1.11190.

The projected path suggests that several smaller impulsive waves may unfold before the final downside target is reached.

Descending Trendline Continues To Act As Resistance

A major descending trendline connects the recent swing highs and continues to cap bullish advances.

The inability of buyers to break above this trendline reinforces the bearish outlook.

As long as price remains below this resistance structure, downside risks are likely to remain elevated.

Key Resistance Zone

• 1.1680 – 1.1720

This area represents a potential sell zone where bearish pressure may re-emerge.

Momentum Indicator Supports Further Weakness

The Awesome Oscillator (AO) remains below the zero line, indicating that bearish momentum continues to dominate.

Although temporary rebounds may occur, the momentum profile currently favours additional downside movement rather than a sustained bullish reversal.

Traders should monitor momentum shifts for confirmation of the next impulsive decline.

Major Support And Downside Target

The projected Wave (C) target aligns with a significant support zone around 1.11190.

Key Support Zone

• 1.11190
• 1.1080

This region may attract buying interest and potentially mark the completion of the corrective sequence.

Trading Outlook

The overall technical outlook remains bearish while EURUSD trades below the descending trendline resistance.

Any corrective rally toward the 1.1680–1.1720 resistance area may provide opportunities for sellers to re-enter the market. The bearish ABC structure suggests that further downside movement remains possible, with 1.11190 serving as the primary target.

A decisive break above the descending trendline would invalidate the current bearish scenario and require a reassessment of the market structure.

Conclusion

EURUSD remains trapped within a descending channel and continues to respect major trendline resistance. The developing ABC corrective structure points to additional downside potential, with Wave (C) projected to target the 1.11190 support area. Until buyers reclaim the descending resistance line, the broader outlook remains tilted in favour of the bears.