EUR/USD on the 4-hour timeframe is currently trapped in a consolidation box, where a breakout above the ceiling or below the floor could provide excellent trading opportunities. I’m Skeptic, and in this analysis, we’ll dive into EUR/USD across multiple timeframes to identify key long and short triggers. Stick with me until the end for a complete breakdown! 🚀
Daily Timeframe: Uptrend Context 🟢
On the daily chart, EUR/USD remains within an uptrend channel, maintaining a bullish major trend. Recently, after hitting the channel’s upper resistance, the pair corrected toward the midline, a critical support zone within the channel. However, the reaction at the midline lacked strong bullish momentum, leading to a 4-hour range consolidation. This could signal the end of the correction, potentially setting the stage for a continuation of the downmove toward the lower channel boundary.
4-Hour Timeframe: Range Dynamics 🔍
On the 4H chart, EUR/USD is oscillating between 1.13904 (resistance) and 1.13153 (support). A key observation: after the initial bounce from the 1.13153 support to 1.13904, subsequent tests of this support failed to push back to 1.13904. This indicates waning buyer strength at the 1.13153 support, increasing the likelihood of a breakout below. Additionally, while bullish candles in this range are larger, we’re seeing smaller, frequent green candles, suggesting buyer exhaustion within the box.
For traders eyeing a short setup, this weakening support at 1.13153 offers a compelling opportunity. You can take on slightly higher risk by placing a sell-stop order below 1.13153 instead of waiting for a confirmed breakout candle (this is my personal approach). A short trigger would be validated by a break below 1.13153, with RSI entering oversold as a strong confirmation. Short targets: 1.12692, with a potential extension to 1.12006.
For a long setup, a breakout above 1.13904 could signal a resumption of bullish momentum, targeting the upper channel boundary on the daily chart. Wait for a confirmed breakout before entering long to avoid false signals.
DXY Correlation: Additional Confirmation 📈
Let’s also consider the US Dollar Index (DXY). After a recent rally, DXY has entered a time-based correction, visible as a pullback to a descending yellow trendline. A break below DXY’s support at 99.195 would reinforce our EUR/USD long setup, while a breakout above the trendline and 99.876 would strengthen our EUR/USD short setup. Both scenarios offer sharp price movements with attractive risk-to-reward (R/R) ratios, making these triggers highly actionable.
Final Thoughts 🙌
Thanks for joining me in this detailed EUR/USD analysis! I’m Skeptic, and I share daily forex and crypto insights. If you found this useful, please follow for more content! 🔥
Daily Timeframe: Uptrend Context 🟢
On the daily chart, EUR/USD remains within an uptrend channel, maintaining a bullish major trend. Recently, after hitting the channel’s upper resistance, the pair corrected toward the midline, a critical support zone within the channel. However, the reaction at the midline lacked strong bullish momentum, leading to a 4-hour range consolidation. This could signal the end of the correction, potentially setting the stage for a continuation of the downmove toward the lower channel boundary.
4-Hour Timeframe: Range Dynamics 🔍
On the 4H chart, EUR/USD is oscillating between 1.13904 (resistance) and 1.13153 (support). A key observation: after the initial bounce from the 1.13153 support to 1.13904, subsequent tests of this support failed to push back to 1.13904. This indicates waning buyer strength at the 1.13153 support, increasing the likelihood of a breakout below. Additionally, while bullish candles in this range are larger, we’re seeing smaller, frequent green candles, suggesting buyer exhaustion within the box.
For traders eyeing a short setup, this weakening support at 1.13153 offers a compelling opportunity. You can take on slightly higher risk by placing a sell-stop order below 1.13153 instead of waiting for a confirmed breakout candle (this is my personal approach). A short trigger would be validated by a break below 1.13153, with RSI entering oversold as a strong confirmation. Short targets: 1.12692, with a potential extension to 1.12006.
For a long setup, a breakout above 1.13904 could signal a resumption of bullish momentum, targeting the upper channel boundary on the daily chart. Wait for a confirmed breakout before entering long to avoid false signals.
DXY Correlation: Additional Confirmation 📈
Let’s also consider the US Dollar Index (DXY). After a recent rally, DXY has entered a time-based correction, visible as a pullback to a descending yellow trendline. A break below DXY’s support at 99.195 would reinforce our EUR/USD long setup, while a breakout above the trendline and 99.876 would strengthen our EUR/USD short setup. Both scenarios offer sharp price movements with attractive risk-to-reward (R/R) ratios, making these triggers highly actionable.
Final Thoughts 🙌
Thanks for joining me in this detailed EUR/USD analysis! I’m Skeptic, and I share daily forex and crypto insights. If you found this useful, please follow for more content! 🔥
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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.
Related publications
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.