The euro may weaken further versus the US dollar

EUR/USD has slipped out of a fragile consolidation

EUR/USD fell sharply after the stronger-than-expected US jobs report on 5 June, pushing the pair below a short-term support level at 1.159. According to the TradingView analysis, that move also knocked the euro out of a consolidation pattern that had started to look like a larger bear flag.

As of 8 June, the pair is trying to stabilise near 1.151, but the broader setup still looks vulnerable. Instead of a healthy pause before another leg higher, the recent price action is starting to suggest that the rally has lost momentum and that sellers may be regaining control.

A break below 1.151 could open the door to 1.14

The key level now is the support region around 1.151. If EUR/USD breaks below that zone, the next obvious area to watch is 1.14, which would take the pair back towards levels last seen in mid-March.

That downside target also fits with the bear flag interpretation. If the recent consolidation was just a pause in a larger move lower, then a clean break of support would strengthen the case that the euro is extending that bearish pattern rather than simply dipping inside a broader range.

Moving averages are now acting as resistance

The source analysis notes that EUR/USD is trading below all of its major moving averages, including the 10-day and 20-day exponential moving averages and the 50-day and 200-day simple moving averages. More importantly, the shorter-term averages are trending lower and are now acting as overhead resistance.

That leaves the pair facing a difficult technical hurdle around 1.158. Even if EUR/USD continues to bounce in the very near term, it may struggle to reclaim that area unless the broader backdrop for the dollar starts to soften.

Momentum still points to a weaker euro

The RSI has also been trending lower since peaking above 70 in late January, which suggests bullish momentum has been fading for months. It is now sitting around 36 and still pointing lower, which many technical analysts would read as a sign that bearish pressure remains intact.

That does not guarantee another sharp leg down, but it does fit with the idea that rallies may be vulnerable to selling while EUR/USD stays below its key moving averages. For now, unless support at 1.151 proves much more durable than it looks, the balance of risks still appears to favour further downside.