FX.co ★ FX-Perfact | EUR/USD

EURUSD H4 – Potential Bounce Setting Up Amid Prolonged Downtrend The EURUSD pair has been in a clear and consistent downtrend for several weeks, with price action remaining below both the 50-period and 200-period moving averages on the H4 timeframe. The red 200-MA continues to slope downward, showing that the broader trend remains bearish, while the blue 50-MA is also trending lower and acting as dynamic resistance. Every attempt by buyers to push the price upward has been met with selling pressure around these moving averages. However, the recent price behavior near the 1.1500–1.1510 zone suggests the possibility of a short-term bounce. This region has acted as a support level multiple times, and the market is now attempting to hold above it again. Although the trend favors sellers, a temporary corrective move toward the 50-MA cannot be ruled out if this support level continues to hold.

The candles forming in this area show hesitation from sellers, indicating that bearish momentum may be slowing down. A clean break above minor intraday resistance could open the way for a corrective push toward the 1.1550–1.1580 region, where the 50-MA is currently positioned. This zone may once again act as an area of interest for sellers looking to rejoin the dominant trend. On the other hand, if EURUSD fails to stay above 1.1500, the next leg downward could start, potentially targeting the 1.1450 area. The market has been respecting the overall bearish structure, so traders should remain cautious about expecting a full trend reversal unless stronger bullish signals appear. Overall, this chart suggests that while the long-term bias remains bearish, the market may be preparing for a short-term technical bounce. Patience is important here, as confirmation will depend on how price behaves around current support and upcoming resistance levels.