EURUSD has formed a descending triangle pattern on its short-term time frame, with price carving out a series of lower highs beneath a declining trend line while finding support at the horizontal floor around the 1.1790 level. The pair is currently testing this critical support zone, putting bulls and bears at a decisive crossroads.

If the 1.1790 floor manages to hold, EURUSD could stage a bounce back toward the descending trend line resistance, which is now converging near the 1.1850 area.

A stronger recovery could push the pair up toward the 1.1900 psychological level and the moving average cluster, where additional selling pressure may emerge.

However, a break and daily close below the 1.1790 support could confirm the descending triangle breakdown and set off a more sustained decline. The measured move target from the pattern projects a drop equal to the height of the formation, pointing to potential losses toward the 1.1700 region or lower.

The 100 SMA has crossed below the 200 SMA, confirming that the path of least resistance is to the downside. Both indicators are sloping lower and converging near the 1.1850 area, suggesting these could reinforce resistance on any bounce attempts.

Stochastic has dipped into oversold territory and appears to be attempting a turn higher, hinting that sellers could be running low on steam in the near term. A bullish crossover from this level would support a corrective bounce back to the moving averages or trend line resistance.

RSI is also hovering near oversold conditions, giving bulls some room to work with. However, the oscillator has plenty of ground to cover before reaching neutral levels, meaning that a prolonged recovery is not guaranteed and that selling pressure could return quickly if buyers fail to build momentum from here.

EURUSD has been dragged down by dollar strength ensuing from upbeat mid-tier data and hawkish FOMC meeting minutes, possibly keeping downside pressure on the pair unless sentiment shifts in the near-term.