The EUR/USD pair is currently trading at 1.12468, showing signs of hesitation near a major supply zone identified between 1.12400 – 1.14000, a level that has historically acted as strong resistance.
Key Technical Observations (4H Chart):
Supply Zone (1.12400 – 1.14000): Price reacted strongly here in the past, and we're seeing another potential reversal setup as sellers begin to step in.
Bearish Divergence on recent highs (check RSI/MACD) confirms weakening bullish momentum.
Double Top Formation forming just below 1.14000, a classic reversal pattern.
Break Below 1.12000 could trigger a sell-off toward 1.09000, with further downside to 1.04000 if macro sentiment aligns.
Demand Zone remains solid around 1.03400 – 1.04000, where buyers previously pushed the pair higher.
Fundamental Catalysts to Watch:
Upcoming ECB & FOMC statements (see icons marked on the chart).
US Jobs Data & CPI releases may heavily influence USD strength.
Geopolitical tensions and Eurozone economic projections also playing a role in sentiment.
My Trading Plan:
Watching for bearish confirmation (e.g., 4H bearish engulfing candle) below 1.12400.
Short Entry Zone: 1.12200 – 1.12400
Target 1: 1.09000
Target 2: 1.04000
SL: Above 1.14000 zone (tight risk management).
Conclusion:
This could be a high-risk reversal zone with great R:R setup if confirmed. Always wait for price action confirmation and watch for news catalysts!
If this analysis helps you, give it a like and follow for more smart breakdowns like this! Let’s grow together as traders.
Key Technical Observations (4H Chart):
Supply Zone (1.12400 – 1.14000): Price reacted strongly here in the past, and we're seeing another potential reversal setup as sellers begin to step in.
Bearish Divergence on recent highs (check RSI/MACD) confirms weakening bullish momentum.
Double Top Formation forming just below 1.14000, a classic reversal pattern.
Break Below 1.12000 could trigger a sell-off toward 1.09000, with further downside to 1.04000 if macro sentiment aligns.
Demand Zone remains solid around 1.03400 – 1.04000, where buyers previously pushed the pair higher.
Fundamental Catalysts to Watch:
Upcoming ECB & FOMC statements (see icons marked on the chart).
US Jobs Data & CPI releases may heavily influence USD strength.
Geopolitical tensions and Eurozone economic projections also playing a role in sentiment.
My Trading Plan:
Watching for bearish confirmation (e.g., 4H bearish engulfing candle) below 1.12400.
Short Entry Zone: 1.12200 – 1.12400
Target 1: 1.09000
Target 2: 1.04000
SL: Above 1.14000 zone (tight risk management).
Conclusion:
This could be a high-risk reversal zone with great R:R setup if confirmed. Always wait for price action confirmation and watch for news catalysts!
If this analysis helps you, give it a like and follow for more smart breakdowns like this! Let’s grow together as traders.
✅JOIN FREE SIGNALS t.me/frankfxforextrade
✅FOR VIP DM: t.me/frankfx22
✅ AUTOMATED BOT: bot.frankfxx.com/
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ XM frankfxx.com/xm
✅FOR VIP DM: t.me/frankfx22
✅ AUTOMATED BOT: bot.frankfxx.com/
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ XM frankfxx.com/xm
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
✅JOIN FREE SIGNALS t.me/frankfxforextrade
✅FOR VIP DM: t.me/frankfx22
✅ AUTOMATED BOT: bot.frankfxx.com/
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ XM frankfxx.com/xm
✅FOR VIP DM: t.me/frankfx22
✅ AUTOMATED BOT: bot.frankfxx.com/
✅ICMARKETS frankfxx.com/icmarkets
✅ EXNESS frankfxx.com/exness
✅ XM frankfxx.com/xm
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.