Market Analysis for EUR/USD
Comprehensive market analysis of EUR/USD based on hourly, 4-hour, and daily charts. The analysis identifies key support and resistance levels, outlines trade ideas with entry and exit points, and emphasizes a bullish trend backed by technical indicators. This analysis is provided by FBS Broker, highlighting potential trading opportunities and risk management strategies.
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Daily Timeframe Overview
The daily chart of EUR/USD shows the pair forming an ascending wedge pattern with a key rejection near the 1.11564 level. This is marked by a wick fill, indicating a potential exhaustion of buyers in this region. The market has formed a series of higher lows and is currently testing a crucial support zone near 1.10485. This area could act as a demand zone where buyers may step in, but a breakdown below would signal further downside.
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- Wick Fill: Price has filled the previous daily wick, signaling potential bearish continuation or exhaustion.
- Key Support Zone: The area between 1.1000 and 1.10485 is significant for potential buy reactions or a breakdown.
Possible Scenarios:
- Bullish Scenario: A bounce from the support zone may lead to a retest of the 1.11564 level.
- Bearish Scenario: A break below 1.10485 may see the price head towards the 1.1000 or lower levels near 1.09832.
4-Hour Chart Analysis
On the 4-hour chart, there’s a trendline breach coupled with a cross of the 50 EMA, signaling the possibility of a deeper retracement. The market has already filled the wick mentioned on the daily timeframe, and the price action appears to be consolidating near the 1.10400 region.
- Trendline Breach: Indicates a potential shift in market structure, suggesting further bearish movement.
- 50 EMA Crossover: This is often seen as a bearish signal, and the price is struggling to regain bullish momentum.
Possible Scenarios:
- Bearish Bias: A rejection from the breached trendline could see the price move lower towards the 1.1000 zone.
- Bullish Correction: A pullback above 1.10500 could bring buyers back into the market, but would need confirmation above 1.1100 for continued upward movement.
1-Hour Chart
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The 1-hour chart shows price action forming a descending channel after the previous bullish breakout attempt failed. The daily wick fill is evident here, but the price is consolidating around the 1.10448 region, suggesting indecision.
- Support Zones: Immediate support lies at 1.10263 and 1.1000.
- Resistance Zones: Resistance can be expected near the 1.1060 - 1.1100 level.
Possible Scenarios:
- Bearish Breakdown: If the price breaks below the support level of 1.10263, it may head towards the 1.1000 level, with the potential for a further drop to 1.09832.
- Bullish Reversal: A break above 1.10600 would indicate a short-term bullish reversal, targeting the next resistance zone near 1.1100.
15-Minute Chart
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The 15-minute chart illustrates a more detailed view of the current consolidation. The price is trading within a tight range, with lower highs forming after the rejection from 1.10600.
- Immediate Support: 1.10400 area.
- Short-term Resistance: 1.10500 and 1.10600 levels.
Possible Scenarios:
- Breakout Play: A breakout above 1.10600 could see the price target the 1.1100 resistance.
- Breakdown Play: A break below 1.10263 could confirm a continuation of the bearish trend.
Summary
EUR/USD is at a critical juncture, with the price currently sitting near significant support zones across multiple timeframes. While the daily wick fill suggests potential bearish continuation, a solid breakdown is needed to confirm the next leg lower. If buyers regain control, a bounce from the support zone near 1.1000 could lead to a short-term bullish rally. However, traders should watch for the 1.10263 and 1.1000 levels for signs of further downward pressure.
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09/10/2024
