EUR/USD Weakens as 1.15790 Level Becomes Critical for Daily Close

EUR/USD is trading just above the 1.15790 support level, a key zone for determining the next trend direction. Market structure looks fragile on the four-hour chart, with the pair struggling to build upward momentum after its recent decline. Price is consolidating near short-term support while technical conditions suggest the next daily close will play a crucial role in confirming the next move.

Broader macro factors are also in play. DXY swept all nearby high-liquidity levels toward the 99.742 area and tapped its daily supply region, signaling renewed dollar strength. If the index holds steady at these levels, the next target could be the 100.108 gap region. EUR/USD recently reached 1.16046 before slipping lower, and the current chart structure shows weakness with lower highs forming and price compressing near support. The New York session may bring additional volatility, as volume spikes during that window can lead to temporary manipulation before direction becomes clearer.

The chart also shows a broader demand block near the 1.15010 region, which aligns with the downside target for a potential extended short setup. A daily close below 1.15790 would strengthen the bearish outlook and could open the path toward this deeper support area. On the flip side, a daily close above the predefined invalidation level would trigger manually closing active short positions. The current EUR/USD environment remains complex, as overlapping support and resistance zones make directional reading increasingly challenging.

This matters because EUR/USD remains sensitive to shifts in dollar liquidity, macroeconomic expectations, and market sentiment. With DXY showing renewed momentum and EUR/USD positioned near a critical structural level, the upcoming daily close could influence short-term volatility and shape broader currency-market flows in the sessions ahead.

Source: Kodak