The EURUSD has fallen sharply after testing key resistance in the early U.S. session, where sellers stepped in decisively. As outlined in today’s Kickstart video, that resistance area capped the upside and sparked a reversal. The decline has now pushed the pair below the 38.2% retracement of the move up from the mid-October low at 1.15670, sending price down toward a critical swing area that acted as a floor in October, a ceiling in early November, and a floor again after the breakout on November 7. The last successful test of that floor on November 11 helped launch the rally toward last week’s high at 1.1651.
With the EURUSD now retesting this swing area, dip buyers may try to defend the zone, using the 1.15414 level as a risk-defining stop. A rebound back above the broken 38.2% retracement at 1.1567 would strengthen the argument that a near-term bottom is forming. Conversely, sellers who entered from higher levels will be looking for a firm break below 1.15414–1.1546 to confirm a downside extension. A clean break and hold below that area would likely accelerate bearish momentum.
