EURUSD Technicals: The EURUSD corrects higher but runs into topside resistance

EURUSD falls to new 2026 lows before corrective bounceThe EURUSD moved sharply lower earlier in the day, extending its bearish momentum and breaking to new lows for 2026. In the process, the pair also traded to its lowest level since August 2025, highlighting the continued downside pressure in the currency pair.The move lower forced the price through two key support levels from November 2025. The first level came in at 1.14912, the low from November 21, followed by the November 5 low at 1.14687. Those levels had served as an important support area for months, but once broken, they helped accelerate the move lower.The selling ultimately pushed the EURUSD down to 1.14321, marking the low for the day before buyers stepped in to produce a corrective rebound.Corrective rally stalls below key November resistanceAfter reaching the session low, the EURUSD did manage to bounce higher during the North American session. That recovery pushed the price back above the 1.14687 level, reclaiming the November 5 low in the process.However, the rebound lacked sustained momentum. The corrective move stalled just ahead of the next key resistance level at 1.14912, which corresponds to the November 21 low that had previously acted as support.The rally peaked at 1.14893, only a few pips shy of that resistance level, before sellers once again stepped in. Since then, the pair has rotated back to the downside, with the current price trading near 1.14475.Moving averages reinforce bearish short-term biasThe corrective move higher also tested an important short-term technical level — the 200-bar moving average on the 5-minute chart (shown as the green line on the chart elow). While the EURUSD briefly moved above that average during yesterday’s trading (see red shaded area), sellers quickly regained control.After breaking back below both the 100-bar and 200-bar moving averages, the pair successfully retested those levels from underneath, confirming them as resistance. In trading today, the price has made two additional attempts to move above the 200-bar moving average, but each test has been firmly rejected by sellers (follow the green line on the chart below).This repeated defense of the moving averages reinforces the view that short-term control remains with the sellers.Key levels that could shift the short-term biasFor the short-term bias to shift back toward the upside, buyers would need to push the price above both the 100-bar and 200-bar moving averages, and then extend the move through the key swing level at 1.14912.A break above that cluster of resistance would weaken the current bearish structure and open the door for a larger corrective move higher.Until that happens, however, the sellers remain firmly in control, with the broader focus still on whether the pair can extend its break to fresh lows going forward.
This article was written by Greg Michalowski at investinglive.com.

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