EUR/USD Drops Sharply After Rejection at 1.1665

The euro’s recent momentum has taken a sharp bearish turn. After pushing up to 1.1665, EUR/USD reversed violently and dropped nearly 40 pips in a matter of minutes. This setup shows why patience and risk management separate winners from losers, especially on volatile intraday charts.

From Breakout to Breakdown

It’s a textbook example of how fast things can change in currency markets—and a perfect illustration of what trader Udron recently pointed out: “Discipline is boring, but being a failure is worse.” On the 15-minute chart, EUR/USD initially rallied from 1.1613 to 1.1670—a solid bullish push. But the momentum died fast. After hitting resistance around 1.1665, sellers stepped in aggressively, triggering a steep selloff that wiped out almost the entire rally. The pair collapsed back toward 1.1629, where buyers are now trying to hold the line.

This sharp V-shaped reversal signals exhaustion of the earlier bullish move and hints at a potential short-term trend shift.

Key Levels to Watch

• Resistance: 1.1655–1.1665 — This is where sellers took control. The zone now acts as a clear lower high, and breaking back above it would require strong conviction.
• Support: 1.1629–1.1633 — The pair is currently testing this area. A clean break below could open the door to deeper drops toward 1.1610 or even 1.1585.

What’s Driving the Move?

The euro’s weakness reflects broader dollar strength. Markets continue pricing in higher U.S. interest rates for longer, fueled by resilient jobs data and solid consumer spending. Intraday volatility remains elevated, and emotional reactions at key levels can lead to quick losses—exactly what this chart demonstrates.

This EUR/USD reversal isn’t just a technical play—it’s a psychology lesson. The sharp rejection after a brief rally shows why discipline matters more than gut reactions. As message suggests, staying patient and sticking to your plan is the real edge. Sometimes the smartest trade is no trade at all.