EUR/USD Presses Into Key Support ZoneEuro / US DollarCAPITALCOM:EURUSDCapitalcomEUR/USD has fallen steadily over the past month as a stronger US dollar and a hawkish shift from the Federal Reserve have weighed on the pair. With prices now approaching a support zone that has held since last summer, traders are watching closely to see whether buyers can finally halt the recent decline. A Hawkish Fed Keeps Pressure on EUR/USD Last week's Federal Reserve meeting provided fresh support for the dollar after policymakers struck a more hawkish tone than many investors had anticipated. New Fed Chair Kevin Warsh reaffirmed the central bank's commitment to tackling inflation, while updated projections revealed that several policymakers now expect higher interest rates by the end of 2026. The shift prompted a sharp rise in Treasury yields and helped fuel broad dollar strength across the currency market. For EUR/USD, the result has been another leg lower in a downtrend that has been developing since May. The daily chart shows a market that has been staircasing lower for much of the past month. Each rally has stalled at former support levels that subsequently turned into resistance, creating an increasingly steep sequence of lower swing highs. That pattern highlights the degree of control sellers have maintained throughout the decline. Support Faces Another Important Test While the daily trend remains under pressure, the market is now approaching an area that carries much greater significance on the higher timeframe charts. The weekly chart shows EUR/USD testing a support zone that has repeatedly attracted buyers since last summer. Previous visits to this area have triggered meaningful rebounds, making it one of the most important technical levels currently visible on the chart. EUR/USD Weekly Candle Chart Past performance is not a reliable indicator of future results There was also an early sign of buying interest on Friday, with the daily candle chart forming a small bullish hammer as prices probed support. On its own, however, a single candle carries limited significance when viewed against a backdrop of persistent lower highs and lower lows. EUR/USD Daily Candle Chart Past performance is not a reliable indicator of future results For traders looking to time an entry, the four-hour chart may offer a clearer roadmap. A decisive break in the current staircasing downtrend would provide the first indication that momentum is beginning to shift back in favour of buyers. Alternatively, a break beneath support followed by a successful retest could offer evidence that sellers remain firmly in control. EUR/USD 4hr Candle Chart Past performance is not a reliable indicator of future results For now, EUR/USD finds itself at an important crossroads. The broader trend remains lower, but the pair is also testing a support zone that has successfully held multiple times over the past year. Whether buyers can defend that level once again could help determine the next major move. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.