FX.co ★ berta.hill | EUR/USD

EUR/USD no longer looks as confident to the upside as it did a couple of days ago. The situation has changed. The market went above 1.182 twice in a row and sharply reversed both times. These things don't just happen for no reason. Clearly, there are sellers present. Currently, the price is around 1.174 and is holding below the former support at 1.177 - 1.176. This is already a weak signal for buyers. On the 4-hour chart, it is visible that the upward momentum has broken. The EMA 20 has started to turn downwards, the price is sliding, and the structure is not as clean as it was. On lower timeframes, the downward movement looks more organized. There is pressure, weak pullbacks, and the market is gradually moving down. It is important to understand that this is not yet a trend reversal, but rather a normal correction after a strong rise. However, the nature of the movement is already bearish. The key zone from above is now 1.176 - 1.178. If the price returns there, it is logical to expect a reaction and a possible continuation to the downside. The nearest target from below is 1.172. If it is broken, the path to the 1.165 - 1.16 area will open up. Overall, everything is pointing towards the dollar. Whenever there is tension or uncertainty, it strengthens, immediately putting pressure on the euro. This is exactly the current situation. In conclusion, the bias has shifted downwards. Not aggressively, but confidently. It's better to look for short opportunities on pullbacks rather than trying to catch a reversal to the upside.