- January 27, 2025
- Posted By: james w
- Category: Market News
Price Action Insights for EUR/USD H4 Chart
The EUR/USD, often referred to as “Fiber,” is the most traded currency pair globally, representing the Eurozone’s euro against the United States dollar. As a major forex pair, it reflects the economic interplay between the European Union and the United States, with its price action influenced heavily by macroeconomic data and monetary policy announcements. Today’s focus is on key events, including a speech by ECB President Christine Lagarde and business confidence reports from the Eurozone. Lagarde’s remarks could provide valuable insights into the ECB’s monetary policy trajectory, potentially signaling upcoming rate hikes, which would boost the euro. Additionally, German ifo Business Climate and Belgium NBB Confidence data will gauge sentiment within the Eurozone’s economy, with stronger-than-expected results likely to reinforce EUR strength. On the USD side, the New Home Sales report offers insights into the U.S. housing market, a critical economic barometer. Together, these events create a volatile environment for the EURUSD.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
The EUR-USD H4 chart reveals a pivotal moment. The price is currently above the Ichimoku cloud, signaling a bullish trend. However, the Senkou Span B line is starting to flatten, hinting at potential trend exhaustion. After testing and reacting to the resistance from the upward trendline, the EUR USD price is now correcting downward, aiming toward the support level at 1.04465. The MACD indicator shows weakening momentum, as its histogram begins to shrink and the signal line prepares for a possible bearish crossover. This correction may provide opportunities for re-entry on a dip near support levels.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.