FX.co ★ HusnainRamzan | EUR/USD

EUR/USD The EUR/USD H4 chart presents a clear bearish narrative characterized by a significant breakdown followed by a period of low-volatility consolidation. After a steady decline through late February, the pair experienced a sharp acceleration downward on March 2nd, decisively breaking below the psychological 1.1650 level. Price Action and Key Levels The dominant feature is the shift from a slow descent into a bearish impulse. The level at 1.1650, which previously acted as support, has now transitioned into a significant resistance zone (the "Role Reversal" principle). Currently, the price is oscillating between 1.1560 and 1.1620. The candlesticks show several attempts to recover, but long upper wicks near the 1.1620–1.1650 area suggest that sellers are aggressively defending this zone. The price remains pinned below the Moving Average (red line), confirming that the short-term trend is firmly in the hands of the bears. Technical Indicators * RSI (14): Sitting at 46.65, the Relative Strength Index is in neutral territory. It has recovered from near-oversold levels (below 30) reached on March 2nd, but it lacks the momentum to cross above the 50-midline. This "reset" in the RSI provides room for another potential leg down. * ADX (14): The Average Directional Index stands at 29.64, indicating a trend of moderate strength. While the ADX line is currently sloping downward—suggesting the initial "crash" momentum is fading into a sideways range—the bearish DI (Directional Indicator) lines remain dominant. Market Outlook The pair is currently in a "wait-and-see" phase. For a bearish continuation, we would need to see a daily close below the recent swing low of 1.1560, which could open the door for a move toward the 1.1500 handle. Conversely, for the bulls to regain control, the price must reclaim the 1.1650 resistance. Until that happens, the bias remains skewed to the downside, with any pullbacks toward the 1.1650 level likely being viewed by traders as opportunities to enter short positions. Would you like me to look up the latest fundamental news for the Euro or the US Dollar to see what might trigger the next breakout?

Would you like me to look up the latest fundamental news for the Euro or the US Dollar to see what might trigger the next breakout