Bearish Bias but Eyeing a Quick Buy! EUR/USD Ready to Move?
Looking at the EUR/USD market structure from a top-down perspective, starting with the weekly chart, we can see that price is still in a downtrend overall, trading below both the 21 EMA and 200 EMA, which indicates continued bearish momentum. The weekly support and resistance levels are marked with yellow lines, and as of now, price is hovering near the 1.07967 daily support level. It’s bounced off this area, showing some potential for a temporary retracement, but I’m still eyeing further downside as long as price remains below 1.09145, the next weekly resistance level.
Moving down to the daily chart (second image), price is forming a potential reversal pattern, bouncing slightly above the 1.07967 support level. The daily 21 EMA is acting as dynamic resistance, and until price closes convincingly above this area, I’m cautious about taking any long positions. I would expect price to potentially push towards the 1.08738 resistance if the retracement continues, but overall, the bearish trend remains intact as long as we stay below the 1.09145 weekly resistance.
Finally, on the 4-hour chart (third image), price is showing a slight break of the downtrend, with some bullish momentum coming in. If price holds above the 1.07967 support level and continues pushing higher, I’d consider entering a buy position around 1.08200, targeting 1.08738 with a stop loss below 1.07900. If we see a strong rejection from 1.08738, I’d switch back to a bearish bias, potentially looking for sells back down to 1.07340 or lower.
Moving down to the daily chart (second image), price is forming a potential reversal pattern, bouncing slightly above the 1.07967 support level. The daily 21 EMA is acting as dynamic resistance, and until price closes convincingly above this area, I’m cautious about taking any long positions. I would expect price to potentially push towards the 1.08738 resistance if the retracement continues, but overall, the bearish trend remains intact as long as we stay below the 1.09145 weekly resistance.
Finally, on the 4-hour chart (third image), price is showing a slight break of the downtrend, with some bullish momentum coming in. If price holds above the 1.07967 support level and continues pushing higher, I’d consider entering a buy position around 1.08200, targeting 1.08738 with a stop loss below 1.07900. If we see a strong rejection from 1.08738, I’d switch back to a bearish bias, potentially looking for sells back down to 1.07340 or lower.
Sheena Lynne
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.