The EUR/USD market trend is currently characterized as a strong downtrend, with a bearish momentum dominating the market. The price has been declining steadily, forming a series of lower highs and lower lows, indicating a weakening Euro (EUR) against the US Dollar (USD). The trend is driven by fundamental factors such as: 1. Interest rate differentials: The US Federal Reserve's(FED) hawkish stance and rate hikes contrast with the European Central Bank's dovish approach. 2. Economic growth: The US economy shows resilience, while the Eurozone faces growth concerns and inflationary pressures. 3. Geopolitical tensions: Ongoing conflicts and political uncertainty in Europe weigh on the Euro. Technical indicators confirm the downtrend: 1. Moving Averages: The 50-day and 100-day MAs are trending downwards, with the price below both. 2. Relative Strength Index (RSI): The RSI is in oversold territory, indicating potential for further downside. 3. Support and Resistance: Key support levels at 1.0800 and 1.0600 have been broken, with resistance at 1.1000 and 1.1200. Traders are short-selling, expecting further EUR weakness, with potential targets at 1.0500 and 1.0400. However, a reversal could occur if the price breaks above resistance levels or if fundamental drivers shift.