EUR/USD shows signs of weakness beneath the surface.
Price Structure
EUR/USD is currently forming lower highs and lower lows — indicating a mild bearish trend. The recent bounce failed to produce a breakout above key resistance and appears to be fading near 1.1370. This may hint at a distribution phase rather than accumulation.
Accumulation/Distribution (A/D) Line
The A/D line has been flattening and turning down since late April.
This suggests that despite minor price rallies, no significant buying pressure is occurring — rather, it may indicate smart money distribution.
On-Balance Volume (OBV)
OBV surged in early April but has since formed a clear downtrend.
As price attempted to climb higher in May, OBV failed to confirm — showing a classic bearish divergence.
Lack of volume confirmation implies fading buying interest.
This leads us to conclude that the EURUSD will initially remain bearish. An ideal target for a short position is the open Sunday gap, which we have chosen here as a TP.
Price Structure
EUR/USD is currently forming lower highs and lower lows — indicating a mild bearish trend. The recent bounce failed to produce a breakout above key resistance and appears to be fading near 1.1370. This may hint at a distribution phase rather than accumulation.
Accumulation/Distribution (A/D) Line
The A/D line has been flattening and turning down since late April.
This suggests that despite minor price rallies, no significant buying pressure is occurring — rather, it may indicate smart money distribution.
On-Balance Volume (OBV)
OBV surged in early April but has since formed a clear downtrend.
As price attempted to climb higher in May, OBV failed to confirm — showing a classic bearish divergence.
Lack of volume confirmation implies fading buying interest.
This leads us to conclude that the EURUSD will initially remain bearish. An ideal target for a short position is the open Sunday gap, which we have chosen here as a TP.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.