EUR/USD Pulls Back from Yearly HighsEuro / U.S. DollarFOREXCOM:EURUSDFOREXcomThe EUR/USD pair has depreciated by nearly 0.5% over the past three trading sessions, favoring the U.S. dollar. At the moment, this appears to be the prevailing short-term trend, marking a new and steady bearish bias that has started to weigh on the euro. The current selling pressure has remained consistent, as the U.S. dollar shows renewed strength. The DXY index, which measures dollar performance, has been rising toward the 98 level, showing a solid recovery that could further intensify downward pressure on EUR/USD. Sustained Uptrend In recent weeks, the euro has shown consistent bullish momentum, maintaining a dominant uptrend on the long-term chart. So far, the recent bearish corrections haven’t been strong enough to break the structure, making it the key technical formation to watch in EUR/USD. However, the dollar’s current recovery appears to be gaining traction, and if that trend continues, it could put the existing uptrend at risk. Technical Indicators MACD:The MACD histogram is oscillating near the neutral zero line, suggesting that momentum from the moving averages remains balanced. If this continues, price action could consolidate into a more defined neutral range in upcoming sessions. ADX:The ADX line remains above the 20 threshold but is starting to slope downward, which, if sustained, may lead to a more neutral price structure in the near term. Key Levels to Watch: 1.18068 – Key resistance: This level marks the yearly high for EUR/USD. A breakout above this point could reinforce the current bullish trend. 1.15299 – Nearby support: A recent neutral zone. A breakdown here could trigger a stronger bearish bias and threaten the prevailing uptrend. 1.13177 – Distant support: Corresponds to a consolidation zone formed in May. If price drops to this level, it may activate a fresh and meaningful bearish trend. Written by Julian Pineda, CFA – Market Analyst