FX.co ★ Sheet8 | EUR/USD

EURUSD 4-HOUR Chart Analysis: The prevailing sentiment on the current 4-hour chart remains overwhelmingly bearish, with the market still dominated by a series of declines. The EURUSD currency pair continues to gather downward momentum, reinforcing a negative short-term outlook. This bearish bias is clearly illustrated by the price's sustained movement below the Ichimoku cloud, a technical configuration that signals persistent selling pressure. Further reinforcing this outlook, the stochastic oscillator is present in overbought territory, which in a dominant downtrend can often signal a renewal of selling interest rather than a bullish reversal. This reading adds conviction to the case for further declines. During today's trading session, the pair's dynamics played out as expected; after testing the pivotal level, it failed to gain upward traction and instead continued its journey south. Market participants have successfully solidified their position below a key reversal level, indicating strengthened bearish control. Since the commencement of the trading week, the bearish cohort has maintained its dominance, driving the price to a current level of 1.1591. The immediate target for any intraday decline is the support offered by the next reversal level. I expect the decline to persist from the current levels, with a decisive break below the first significant support at 1.1531 being the critical catalyst. Such a breach would likely trigger a new and accelerated wave of selling, propelling the market to continue its downtrend toward the next major support level at 1.1442.

Conversely, any attempt by bulls to return to the market would face a significant immediate obstacle. The key resistance level at 1.1720 serves as the primary reference point in the current chart section. For the time being, however, the road north appears effectively blocked by this technical barrier and the weight of the prevailing bearish momentum.