EUR/USD has shown significant volatility in recent days. With strong bearish pressure evident across various timeframes, this pair seems to be under the influence of market sentiment. This article will discuss EUR/USD technical analysis on the Daily, H4, and H1 timeframes, focusing on trends, support and resistance levels, and trading opportunities for the upcoming days.
EUR/USD Analysis: Daily Timeframe
Trend
On the Daily timeframe, EUR/USD is in a strong downtrend, marked by a series of lower highs and lower lows. The latest candlestick reflects significant selling pressure, coupled with a close below the moving averages.
Support and Resistance
- Key Support: 1.0460 (recent lowest level).
- Closest Resistance: 1.0570 (based on moving averages acting as dynamic resistance).
Indicators
- Stochastic Oscillator is in the oversold zone at 17, indicating a potential short-term price reversal.
- Moving Averages (MA-20 and MA-50): Price is below both MA lines, confirming bearish pressure.
Read: XAU/USD Technical Analysis Today: Bullish!
EUR/USD Analysis: H4 Timeframe
Trend
The H4 timeframe also reveals a clear downtrend. Price continues to move below the MA-20 and MA-50, signaling seller dominance.
Support and Resistance
- Support: 1.0480 (recent low level on this timeframe).
- Resistance: 1.0520 (MA-20 on the H4 timeframe).
Read: How to identify support and resistance
Indicators
- Stochastic Oscillator is deep in the oversold zone at 9.5. However, no valid reversal signal has been observed as there is no crossing yet.
- Bearish momentum remains dominant, as evidenced by strong bearish candlesticks breaking previous support levels.
EUR/USD Analysis: H1 Timeframe
Trend
On the H1 timeframe, EUR/USD is in a short-term downtrend, with price movement below both MA-20 and MA-50. Selling pressure increased after breaking through intraday support levels.
Support and Resistance
- Support: 1.0475 (latest intraday low level).
- Resistance: 1.0510 (dynamic resistance from MA-20).
Indicators
- Stochastic Oscillator on the H1 timeframe is also in the oversold zone at 23. However, this condition has yet to show strong signs of reversal.
- Selling pressure remains dominant, particularly after a long bearish candlestick.
Price Movement Prediction
Based on the analysis across all timeframes:
- Short-Term Outlook: Price is likely to test the support level at 1.0460 before a potential minor correction upward.
- Long-Term Outlook: The downtrend remains dominant as long as the price stays below the 1.0570 resistance level.
Trading Recommendations
- Trade Setup:
- Sell around 1.0510 (near intraday resistance).
- Take Profit (TP): 1.0460 (key support).
- Stop Loss (SL): 1.0535 (above intraday resistance).
Rationale
- Bearish dominance across all timeframes.
- Oversold stochastic suggests limited corrective moves, insufficient to reverse the trend.
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