EURUSDThis 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)
