Euro / U.S. DollarShort
EURUSD SHORT
EUR/USD Top-Down Analysis: A Key Moment for Precision Traders
Weekly Timeframe
• Trend Structure: EUR/USD remains in a clear bearish trend, having broken its consolidation range on November 4th, 2024. Since then, the pair has been in a steady downtrend, forming a tight falling wedge.
• Momentum:
• RSI: Currently at 32, moving out of oversold territory. This suggests the potential formation of a larger lower high while still respecting the bearish structure.
• Macroeconomic Context: The US maintains a slightly hawkish stance, supporting a stronger dollar. However, shifts in economic data could bring volatility, making this a crucial moment for traders to stay prepared.
Daily Timeframe
• Structure: The pair is trading within a decreasing wedge, reflecting the continuation of the broader bearish trend.
• Momentum Indicators:
• RSI: At 41, holding below 50, signaling that bulls lack strength.
• MACD: Lines remain below the zero line, showing no sustained bullish momentum.
• ADX & DI: Maintain bearish pressure, confirming the strength of the current trend.
• CMF: Negative, showing continued outflows and limited accumulation.
• Fibonacci Levels: The price has rejected the 0.786 extension, emphasizing this as a key resistance zone.
4H Timeframe
• Structure: The market is respecting a bearish parallel channel, with lower highs and lower lows dominating the trend. Price is approaching a daily order block, a crucial area for potential resistance.
• Momentum Indicators:
• RSI: At 58, reflecting a short-term bullish recovery.
• MACD: Bullish momentum persists, signaling potential continuation to the top of the parallel channel.
• CMF: Now above zero, suggesting minor inflows.
• ADX & DI: Positive DI has overtaken Negative DI, showing strength in this short-term bullish move.
• Observation: While the short-term recovery appears strong, the overall trend remains bearish. This is an area to stay vigilant for high-probability trade setups.
1H Timeframe
• Structure: Price has broken out of a short-term trendline, which caused the last lower low in the 4H bearish structure. This breakout suggests the pair may be heading toward the top of the 4H parallel channel.
• Key Insight: The primary trend is bearish, so we’re avoiding countertrend trades and waiting for confirmations in alignment with the overall structure.
Stay Ready for Precision Entries
EUR/USD is at a pivotal juncture, with short-term movements hinting at bullish recovery, but the broader trend remains bearish. To ensure you’re prepared for precision entries at the right moment, follow us for real-time updates and actionable insights.
This is the moment where patience meets opportunity—don’t miss it! 🚀
Weekly Timeframe
• Trend Structure: EUR/USD remains in a clear bearish trend, having broken its consolidation range on November 4th, 2024. Since then, the pair has been in a steady downtrend, forming a tight falling wedge.
• Momentum:
• RSI: Currently at 32, moving out of oversold territory. This suggests the potential formation of a larger lower high while still respecting the bearish structure.
• Macroeconomic Context: The US maintains a slightly hawkish stance, supporting a stronger dollar. However, shifts in economic data could bring volatility, making this a crucial moment for traders to stay prepared.
Daily Timeframe
• Structure: The pair is trading within a decreasing wedge, reflecting the continuation of the broader bearish trend.
• Momentum Indicators:
• RSI: At 41, holding below 50, signaling that bulls lack strength.
• MACD: Lines remain below the zero line, showing no sustained bullish momentum.
• ADX & DI: Maintain bearish pressure, confirming the strength of the current trend.
• CMF: Negative, showing continued outflows and limited accumulation.
• Fibonacci Levels: The price has rejected the 0.786 extension, emphasizing this as a key resistance zone.
4H Timeframe
• Structure: The market is respecting a bearish parallel channel, with lower highs and lower lows dominating the trend. Price is approaching a daily order block, a crucial area for potential resistance.
• Momentum Indicators:
• RSI: At 58, reflecting a short-term bullish recovery.
• MACD: Bullish momentum persists, signaling potential continuation to the top of the parallel channel.
• CMF: Now above zero, suggesting minor inflows.
• ADX & DI: Positive DI has overtaken Negative DI, showing strength in this short-term bullish move.
• Observation: While the short-term recovery appears strong, the overall trend remains bearish. This is an area to stay vigilant for high-probability trade setups.
1H Timeframe
• Structure: Price has broken out of a short-term trendline, which caused the last lower low in the 4H bearish structure. This breakout suggests the pair may be heading toward the top of the 4H parallel channel.
• Key Insight: The primary trend is bearish, so we’re avoiding countertrend trades and waiting for confirmations in alignment with the overall structure.
Stay Ready for Precision Entries
EUR/USD is at a pivotal juncture, with short-term movements hinting at bullish recovery, but the broader trend remains bearish. To ensure you’re prepared for precision entries at the right moment, follow us for real-time updates and actionable insights.
This is the moment where patience meets opportunity—don’t miss it! 🚀
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.