EURUSD: Possible Pullback To 1.1660 After Impulsive DropEuro / U.S. DollarFOREXCOM:EURUSDRatnerHello everyone, here is my breakdown of the current EURUSD setup. Market Analysis The pair has been trading within a broader bearish structure, clearly respecting a descending trend line that has guided price lower over the past sessions. On the left side of the chart, EURUSD formed an initial consolidation range near the highs before breaking down and establishing a sequence of lower highs and lower lows. This confirmed the transition into a sustained downtrend phase, with sellers maintaining control beneath the dynamic trend resistance. As price continued to decline, another well-defined range developed mid-chart. This consolidation represented temporary balance, but the structure ultimately resolved to the downside with a confirmed breakout below range support. The breakdown aligned with the descending trend line and reinforced bearish continuation. Each breakout phase was followed by impulsive selling, showing strong supply dominance and limited bullish follow-through. Currently, the market accelerated lower and broke beneath the highlighted horizontal resistance zone near 1.1660, which previously acted as support. This level has now flipped into resistance after the breakdown. The sharp selloff drove price directly into the marked support zone around 1.1590, where the market is currently attempting to stabilize. This green support area represents a key demand zone and the first meaningful reaction level after the impulsive move. My Scenario & Strategy At the moment, EURUSD is testing the lower support zone after an extended bearish leg. A short-term corrective rebound toward the 1.1660 resistance area is possible, especially if buyers defend the current demand zone. Such a move would likely be viewed as a pullback into prior structure rather than a confirmed trend reversal. As long as price remains below the descending trend line and under the 1.1660 resistance band, the broader structure favors continued downside pressure. Rejection from that resistance zone could trigger another bearish wave toward fresh lows. However, if the pair establishes strong acceptance back above 1.1660 and breaks the descending trend line, the bearish structure would begin to weaken, opening the door for a deeper recovery toward prior range highs. For now, the dominant bias remains bearish while below resistance, with support at 1.1590 acting as the key short-term reaction level. Always wait for confirmation and manage your risk properly. That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.