EUR/USD Technical Analysis: Bearish Bias Below 1.1217 Ahead of NFP

The EUR/USD pair is trading around 1.1208 under sustained downward pressure. The currency pair remains positioned below critical technical reference levels, including the 4/8 Murray line, the 200-period exponential moving average (EMA), and the 21-period simple moving average (SMA).

Technical Breakdown and Key Resistance

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On the H4 chart, EUR/USD has broken out of the uptrend channel established since October 28. Following a failed attempt to clear resistance at the 200-period EMA, technical indicators suggest that selling pressure remains dominant.

A consolidation below 1.1217 in upcoming sessions confirms a potential sell signal. In this scenario, downward momentum is expected to push the price toward initial support at 1.1160, with further downside targets at 1.1135 and 1.1108.

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Pullback Scenarios and Fundamental Catalyst

Should a short-term pullback occur toward the 1.1230 or 1.1258 resistance levels, the reaction would provide an alternative opening for short positions. From a technical standpoint, these levels serve as strong overhead resistance where renewed selling is anticipated.

Traders are also focusing on the upcoming US Nonfarm Payrolls (NFP) report, which could generate significant market volatility. Positive US economic data may prompt a brief upside push toward 1.1231 or 1.1260 before the prevailing technical trend reasserts itself.

Overall, the primary technical bias remains bearish while EUR/USD trades below the 21 SMA. Market participants should monitor price action around key resistance levels during the high-impact employment release.

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