Technical Analysis:
EUR/USD pared most of its initial losses on Friday, rising from intraday lows at 1.13175 in early European trading to settle near 1.1380 in late New York, down only -0.07% on the day. While the late-session bounce was supported by a temporary retreat in U.S. Treasury yields, modest USD softness, and firmer EUR/JPY, the inability to reclaim the important psychological resistance at 1.1400 highlights growing caution among bullish traders, particularly as near-term technical conditions deteriorate.

The daily chart reveals a clear bearish head-and-shoulders formation emerging, with the neckline sitting precisely around the key 1.1310/15 support area. Additionally, the daily RSI continues to trend lower, reinforcing the view that near-term momentum favors the bears. A definitive daily close below 1.1310 would validate the bearish reversal pattern and project a measured downward move toward the critical support zone at 1.1100/50—a level previously offering strong resistance that now serves as important technical support.

However, longer-term monthly indicators still provide some comfort to bullish traders, suggesting EUR/USD remains structurally supported above the critical 1.1150/1.1200 area. For now, traders should pay close attention to price action around 1.1310. A failure to break decisively below this level and a subsequent recovery above 1.1400 would neutralize the bearish setup, allowing bulls to target higher levels once again. But, as long as downside risks from U.S. asset demand persist and daily momentum indicators point lower, traders should brace for the possibility of further declines toward 1.1100 in the near term.