EUR/USD H4 Analysis: Bearish Trend Prevails Below Ichimoku Cloud

EUR/USD Bearish Momentum Continues Amid Strong U.S. Data Expectations

The EUR/USD forex pair, often referred to as “Fiber,” is the most traded currency pair in the world, representing the economic interplay between the Eurozone and the United States. The EURUSD prices serve as a barometer for global economic stability, influenced by key macroeconomic factors and central bank policies. As the week unfolds, traders are focusing on high-impact U.S. economic data such as the GDP second release, durable goods orders, and weekly unemployment claims, which hold the potential to drive the dollar’s momentum.

Today’s Fiber Fundamental analysis, including the U.S. GDP second release, is anticipated to confirm robust economic growth, signaling continued strength in the U.S. economy. Durable goods orders, particularly excluding transportation, could provide further clues about manufacturing health and production outlooks. If these indicators outperform forecasts, it would reinforce the Federal Reserve’s hawkish stance, boosting the dollar and exerting bearish pressure on EUR/USD. On the European side, GfK consumer confidence data will gauge sentiment in the Eurozone. With the Eurozone’s economic backdrop remaining relatively muted, traders are likely to remain cautious ahead of these events.

Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The H4 EUR/USD chart exhibits a clear bearish trend, as indicated by the price trading below the Ichimoku cloud. This EURUSD bearish bias aligns with the downward-sloping price channel, suggesting continued selling pressure in the near term. The RSI indicator is currently at 48.62, residing in the neutral zone, indicating a lack of strong momentum in either direction. However, it also highlights the possibility of a consolidation phase before the next significant move.

The Ichimoku cloud’s resistance near the 1.0500 level acts as a significant barrier for bullish attempts, while the price’s failure to reclaim this level underscores bearish control. With the RSI failing to break above 50, buyers appear hesitant. A potential breakdown below 1.0440 could open the door for further downside toward the lower boundary of the descending channel around 1.0360. Conversely, a breakout above the cloud and channel resistance could trigger a short-term reversal.

•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.