This is a 4-hour chart of EUR/USD displaying a clear bearish setup with well-defined technical elements:
Chart Analysis Summary:
🔻 Trend Direction: Bearish
Price is forming lower highs and lower lows, confirmed by the descending trendline (with red arrows marking rejections).
The moving averages (EMA 9 and 21) are sloping downward, indicating sustained bearish momentum.
Key Technical Components:
🔹 Trendline Resistance:
Price has rejected the descending trendline multiple times, suggesting strong bearish control.
🔹 Fibonacci Retracement Levels (Swing High to Low):
0.382 level ≈ 1.13485
0.5 level ≈ 1.13131
0.618 level ≈ 1.12707
Price recently tested and rejected around the 0.5–0.618 retracement zone.
🔹 Support Levels & Projections:
Immediate support at ~1.12659 (minor zone).
Fibonacci Extensions target deeper drops:
1.618 = 1.11833
2.618 = 1.10496
3.618 = 1.09134 — aligns with the Daily Demand Zone.
Bearish Bias:
The recent lower high and strong rejection near the fib retracement and trendline suggest a move lower is likely.
A break below 1.12659 would strengthen the case for a continuation toward the 1.11833 and potentially deeper fib targets.
Potential Trade Setup (Short Idea):
Entry: Near 1.1313–1.1348 (if price retests and rejects again)
Stop-Loss: Above 1.1381 (daily resistance)
Take-Profits:
TP1: 1.1183 (1.618 extension)
TP2: 1.1049 (2.618 extension)
TP3: 1.0913 (3.618 extension / Daily Demand Zone)
Chart Analysis Summary:
🔻 Trend Direction: Bearish
Price is forming lower highs and lower lows, confirmed by the descending trendline (with red arrows marking rejections).
The moving averages (EMA 9 and 21) are sloping downward, indicating sustained bearish momentum.
Key Technical Components:
🔹 Trendline Resistance:
Price has rejected the descending trendline multiple times, suggesting strong bearish control.
🔹 Fibonacci Retracement Levels (Swing High to Low):
0.382 level ≈ 1.13485
0.5 level ≈ 1.13131
0.618 level ≈ 1.12707
Price recently tested and rejected around the 0.5–0.618 retracement zone.
🔹 Support Levels & Projections:
Immediate support at ~1.12659 (minor zone).
Fibonacci Extensions target deeper drops:
1.618 = 1.11833
2.618 = 1.10496
3.618 = 1.09134 — aligns with the Daily Demand Zone.
Bearish Bias:
The recent lower high and strong rejection near the fib retracement and trendline suggest a move lower is likely.
A break below 1.12659 would strengthen the case for a continuation toward the 1.11833 and potentially deeper fib targets.
Potential Trade Setup (Short Idea):
Entry: Near 1.1313–1.1348 (if price retests and rejects again)
Stop-Loss: Above 1.1381 (daily resistance)
Take-Profits:
TP1: 1.1183 (1.618 extension)
TP2: 1.1049 (2.618 extension)
TP3: 1.0913 (3.618 extension / Daily Demand Zone)
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.
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.