The EURUSD is trading near the lows of the day and, importantly, below a key technical target area at 1.1681. That level is defined by the convergence of the 200-day moving average and the 38.2% retracement of the rally from the March 16 low, making it an important barometer for buyers and sellers.

This is not the first time the pair has tested that zone. On April 29 and April 30, the price briefly broke below both technical levels before rebounding sharply. On April 23, the pair also dipped below the 200-day moving average for just one trading day before recovering. More recently, on May 5, buyers leaned against the 200-day moving average near 1.1674 and helped propel the pair to a same-day high near 1.1794.

This time, however, sellers are keeping pressure on the pair and have been able to stay below those levels for the last four or so hours. If the price can remain below the 1.1681 area, the next downside targets come into focus at the swing area between 1.1637 and 1.1646. Below that, the 50% retracement of the March rally comes in at 1.16287. Both levels are now within reach.

For sellers, the key is maintaining momentum below the broken support zone. A move back above 1.1681 — allowing for a few pips of flexibility — would weaken the bearish bias and could force shorts to reassess. For now, the sellers are making their play. The next question is whether they can keep the pressure on and extend toward the next downside targets.