FX.co ★ berta.hill | EUR/USD

Technical Analysis of the EUR/USD Currency Pair (H1, H4)

Greetings, colleagues! During yesterday's trading session, we essentially observed a direct correlation with the GBP/USD pair, but the EUR/USD displayed a price dynamic and development below. Currently, the price is ranging between 1.11764 - from here, we are likely to see a small pullback towards the buyers as we have reached the lower boundary highlighted on the higher timeframe. On the hourly timeframe, the price was actively trading to the downside, with a bearish sentiment prevailing, compounded by news that significantly impacted the EUR/USD exchange rate. Similar to the pound, the price reached the lower boundary of the imbalance area, but liquidity was not entirely removed. Therefore, my assumption is that we might see a further upward move. Key support and resistance levels are marked on the chart to provide signals for potential future movements. The first resistance level is at 1.12126 - yesterday, we tested this level, managed to break above and consolidate at the imbalance level, before continuing downwards along the descending trend. While I wouldn't say that the long-term uptrend is intact, I also do not see a significant trend reversal. The support level is within the range of 1.11197 - this is where the bearish targets are located, and we will see if they can be tested at least. A great entry point for buying is anticipated, if any issues arise, then for selling. Since liquidity at higher prices (1.12911) was not initially removed, the bullish targets remain a priority. Additionally, on the hourly timeframe, strong oversold conditions are observed based on technical indicators, but it appears to be more of a minor correction. For now, this is all on the hourly timeframe. H4 Timeframe

On the higher timeframe, we see a retracement and a retest of the order block, which prevented liquidity removal due to volume mismatch. However, a local price high was established, followed by further testing of the lows. The resistance level - a key weekly level - is within the range of 1.12598. It is possible that the bulls might return here once the trend is broken. Currently, the bears are in control - it is unlikely that this movement will reverse, but one can consider entering during a correction or upon a new local price high in a liquidity pool. The support level - a key weekly level - is much lower at 1.10827. Here, the price is likely to experience a pullback as volumes were significantly higher, and the retest was more active. If successful, a reversal towards the north, into the bulls' territory, can be considered, leading to the formation of a broad sideways range. There have been no changes in the linear regression channel - the price came very close to the lower channel boundary, but has not broken through it yet, indicating that the bullish potential still plays some role. In general, it is currently difficult to predict - we will await the European session, but I am inclined towards a downward move after a minor correction towards the resistance level. That's all for now. Thank you all and happy trading.