EUR/USD H4 Chart Analysis

EUR/USD Bearish Momentum on H4 Chart

The EUR/USD pair is one of the most traded currency pairs globally, reflecting the economic health and monetary policies of the Eurozone and the United States. Today, several high-impact economic indicators are expected from the Eurozone, including the French and German Flash Manufacturing and Services PMIs. These reports are crucial as they provide early indications of economic activity and business sentiment. Stronger-than-expected results could bolster the Euro, while weaker-than-expected results could weigh it down. Additionally, the US is set to release its Flash Manufacturing and Services PMIs, alongside Unemployment Claims, which are pivotal for gauging economic momentum and labor market conditions. These indicators will likely cause significant volatility in the EURUSD pair, influencing short-term trading strategies.

h4 chart analysis for eurusd on 23-05-2024

   Chart Notes: 

  • Chart time-zone is UTC (+03:00)
  • Candles’ time-frame is 4h.

The EUR/USD pair in the H4 timeframe, demonstrates significant bearish momentum. The price has retraced to the 61.8% Fibonacci level at 1.07775, indicating a potential reversal zone. The RSI is at 39.48, indicating bearish sentiment but not yet oversold conditions, hinting at potential further declines. The MACD shows the MACD line below the signal line, reinforcing the bearish trend. Key support levels are at 1.07440 (50% Fibonacci retracement) and 1.07106 (38.2% Fibonacci retracement), while resistance is at 1.08251 (78.6% Fibonacci retracement) and 1.08858 (recent highs). The EUR/USD pair’s current bearish trend is influenced by both fundamental and technical factors, and traders should remain cautious. The upcoming high-impact economic data from both the Eurozone and the US could significantly influence the pair’s direction. This analysis suggests that while there are opportunities for short-term trades, the EUR/USD pair’s broader outlook remains bearish, necessitating careful risk management and close monitoring of economic events.

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