The EUR/USD currency pair shows an interesting price movement across multiple timeframes, providing traders with opportunities to make informed decisions based on technical analysis. In this article, we will explore short- to long-term trends, support and resistance levels, and provide actionable trading recommendations.
EUR/USD Analysis on 1-Hour Timeframe (H1)
On the 1-hour timeframe, EUR/USD exhibits a sideways pattern with bearish pressure dominating the later session.
Trend
- The price is moving below the 9-period SMA, indicating continued selling pressure.
- There is no significant momentum for an uptrend, suggesting consolidation at lower levels.
Support and Resistance
- Support: The 1.0460 level serves as the primary support.
- Resistance: The 1.0495 level is the nearest resistance and needs to be broken for an upward move.
Technical Indicators
- Stochastic RSI: The Stochastic RSI is in the oversold area (below 20), indicating potential for a short-term rebound. However, no strong bullish confirmation has appeared yet.
H1 Summary: EUR/USD is likely to consolidate within a narrow range, with a dominant bearish bias.
EUR/USD Analysis on 4-Hour Timeframe (H4)
On the 4-hour timeframe, the bearish momentum is more evident, though early signs of consolidation are emerging.
Trend
- The price remains below the 9-period SMA, reinforcing consistent bearish momentum.
- The previous downtrend is slowing, indicating potential consolidation before the next directional move.
Support and Resistance
- Support: The 1.0460 level remains a critical area to watch.
- Resistance: The 1.0488 level acts as significant short-term resistance.
Technical Indicators
- Stochastic RSI: The indicator is approaching overbought levels following a recent rebound. This suggests that selling pressure may return.
H4 Summary: EUR/USD is in a consolidation phase but remains vulnerable to further bearish moves if resistance is not broken.
EUR/USD Analysis on Daily Timeframe (D1)
On the daily timeframe, EUR/USD continues to exhibit a strong downtrend, with the price staying below the 9-period SMA, reflecting sustained bearish pressure.
Trend
- The price continues to decline after failing to break the key resistance at 1.0670.
- The downtrend remains dominant, with no significant reversal signals yet.
Support and Resistance
- Support: The 1.0460 level is a crucial support zone.
- Resistance: The nearest resistance is at 1.0518, followed by the psychological level of 1.0670.
Read: How to identify support and resistance
Technical Indicators
- Stochastic RSI: The indicator is in the oversold area but has not yet formed a bullish crossover, suggesting further downside potential.
D1 Summary: The strong downtrend persists, with EUR/USD under significant selling pressure.
EUR/USD Price Movement Prediction
- Short-Term (1-2 days): The price is expected to remain within a consolidation range near the 1.0460 support level, with a slight risk of correction toward 1.0488.
- Long-Term (1 week or more): The downtrend is likely to continue if the 1.0460 level is breached, with a potential target near 1.0400.
EUR/USD Trading Recommendations
Sell Strategy
- Entry Point: 1.0480 (wait for a pullback to resistance).
- Take Profit (TP): 1.0435 (near the next support level).
- Stop Loss (SL): 1.0510 (above significant resistance).
Reasoning:
- The price is under bearish pressure across all timeframes.
- The 9-period SMA confirms selling dominance, while the Stochastic RSI indicates potential for further downside after overbought conditions on H4.
Buy Strategy (Alternative for a Breakout)
- Entry Point: 1.0518 (after confirmed breakout on D1).
- Take Profit (TP): 1.0570.
- Stop Loss (SL): 1.0490.
Reasoning:
- A breakout above the 1.0518 resistance may trigger a short-term bullish correction.
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