EURUSD 4H Bearish Trend with Bullish Correction

EURUSD

EURUSD Weekly Chart

📶Technical Analysis

Weekly (1W) Chart:

• Over the course of 2023 and 2024, EURUSD has been consolidating within a range between the support zone at 1.06 and resistance at 1.11.
  
• End of 2024: The support at 1.06 was broken, leading to the creation of a new bottom at 1.0176 in January 2025.
  
• After reaching this low, we saw a strong bullish weekly candle with a +2.19% move, signaling potential for a rebound.
  

Daily (1D) Chart:

• From August to September 2024, the price formed a double top pattern, followed by a bearish trend that lasted until January 2025.
  
• Long-Term Outlook: In the long-term, I remain bearish on EURUSD. However, a potential correction in the short term is expected as the price may test the broken support level around 1.06 and the newly formed bottom in 2025.
  

4-Hour (4H) Chart:

• At the beginning of 2025, we observed a bullish reversal, and now the price is forming a bullish trend on the smaller time frame, confirmed by moving averages and the formation of higher highs and higher lows.
  
• A key observation is that the trend line has been broken, suggesting a potential shift in momentum.
  
• Strategy: I'm currently waiting for a bearish reversal pattern to potentially enter a short position.
  

🔤 Summary:

• In the long term, I remain bearish on EURUSD but expect a potential correction before the price continues lower.
  
• In the short term, I’m looking for a bearish reversal pattern on the smaller time frame (4H) to enter a short position.
  
• The trend line break on the 4H chart is significant and may indicate a shift in trend, so I'll be cautious and monitor for confirmation before taking action.