EURUSD SHORT

EUR/USD Top-Down Analysis: A Key Moment for Precision Traders

Weekly Timeframe
• Trend Structure: EUR/USD remains in a clear bearish trend, having broken its consolidation range on November 4th, 2024. Since then, the pair has been in a steady downtrend, forming a tight falling wedge.
• Momentum:
• RSI: Currently at 32, moving out of oversold territory. This suggests the potential formation of a larger lower high while still respecting the bearish structure.
• Macroeconomic Context: The US maintains a slightly hawkish stance, supporting a stronger dollar. However, shifts in economic data could bring volatility, making this a crucial moment for traders to stay prepared.

Daily Timeframe
• Structure: The pair is trading within a decreasing wedge, reflecting the continuation of the broader bearish trend.
• Momentum Indicators:
• RSI: At 41, holding below 50, signaling that bulls lack strength.
• MACD: Lines remain below the zero line, showing no sustained bullish momentum.
• ADX & DI: Maintain bearish pressure, confirming the strength of the current trend.
• CMF: Negative, showing continued outflows and limited accumulation.
• Fibonacci Levels: The price has rejected the 0.786 extension, emphasizing this as a key resistance zone.

4H Timeframe
• Structure: The market is respecting a bearish parallel channel, with lower highs and lower lows dominating the trend. Price is approaching a daily order block, a crucial area for potential resistance.
• Momentum Indicators:
• RSI: At 58, reflecting a short-term bullish recovery.
• MACD: Bullish momentum persists, signaling potential continuation to the top of the parallel channel.
• CMF: Now above zero, suggesting minor inflows.
• ADX & DI: Positive DI has overtaken Negative DI, showing strength in this short-term bullish move.
• Observation: While the short-term recovery appears strong, the overall trend remains bearish. This is an area to stay vigilant for high-probability trade setups.

1H Timeframe
• Structure: Price has broken out of a short-term trendline, which caused the last lower low in the 4H bearish structure. This breakout suggests the pair may be heading toward the top of the 4H parallel channel.
• Key Insight: The primary trend is bearish, so we’re avoiding countertrend trades and waiting for confirmations in alignment with the overall structure.

Stay Ready for Precision Entries

EUR/USD is at a pivotal juncture, with short-term movements hinting at bullish recovery, but the broader trend remains bearish. To ensure you’re prepared for precision entries at the right moment, follow us for real-time updates and actionable insights.

This is the moment where patience meets opportunity—don’t miss it! 🚀