EUR/USD is showing a bearish movement across several timeframes, characterized by strong selling pressure. This downtrend is supported by significant declines in technical indicators. In this article, we will analyze the H4, Daily, and Weekly timeframes to understand short-term to long-term movements.
EUR/USD Analysis on H4
Trend
In the H4 timeframe, EUR/USD is in a clear downtrend. The price consistently trades below the 50 and 100 SMA, reflecting strong seller dominance in the market.
Support and Resistance
- Key Support: 1.0380
- Nearest Resistance: 1.0450
Stoch RSI Indicator
- Overbought/Oversold: The Stoch RSI shows an oversold position below 30, indicating a potential short-term rebound, although the bearish pressure persists.
EUR/USD Analysis on Daily
Trend
In the Daily timeframe, EUR/USD continues to exhibit a medium-term bearish trend. The price has crossed below the 50 SMA (1.0718) and is heading toward lower levels.
Support and Resistance
- Key Support: 1.0350
- Nearest Resistance: 1.0500
Stoch RSI Indicator
- Overbought/Oversold: Stoch RSI is at level 16, confirming a deeply oversold condition. Selling pressure remains strong, but a minor correction may occur.
EUR/USD Analysis on Weekly
Trend
In the Weekly timeframe, EUR/USD is also in a long-term bearish trend. The price remains consistently below the 50 and 100 SMA, indicating strong downward momentum.
Support and Resistance
- Key Support: 1.0300
- Key Resistance: 1.0550
Stoch RSI Indicator
- Stoch RSI shows extreme oversold conditions at level 1, indicating the price may consolidate before continuing its downward move.
Price Movement Predictions
Short-Term (H4 – Daily)
The price may attempt to retest the resistance levels at 1.0450-1.0500 before continuing its decline toward the 1.0350 support area.
Long-Term (Weekly)
Bearish pressure is likely to drive EUR/USD to the 1.0300 support level. If this level is breached, the next target will be in the 1.0250 area.
Trading Recommendations
- Position: Sell
- Entry Point: 1.0450 (if the price pulls back)
- Take Profit (TP): 1.0350
- Stop Loss (SL): 1.0500
Reasons:
- Bearish dominance across all timeframes.
- Oversold Stoch RSI indicates a minor correction before further decline.
- The 1.0450 resistance level provides an ideal risk-reward ratio.
With the right strategy and proper risk management, you can take advantage of this week’s EUR/USD market opportunities. Make sure to monitor the market closely for further confirmation!
Read more: Risk Management in Forex Trading
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