The EUR/USD pair on the 4-hour timeframe has shown recovery after a sharp decline last month, where a Change of Character (CHOCH) occurred and price managed to find support in a key demand area. Currently, the pair is trading around 1.1720, which is acting as a major static resistance.
Key Levels on the Chart
Main Support: 1.1530 – 1.1600 (green box)
This zone has repeatedly prevented further declines and represents an accumulation area for buyers. As long as the price holds above this level, the bullish outlook remains valid.
Important Resistance: 1.1720 – 1.1750
This area is the top of the recent range. A strong breakout above it could pave the way towards 1.1800. However, failure to break may trigger a pullback towards the 1.1600 zone.
Possible Scenarios
Bullish Scenario: A confirmed breakout and close above 1.1750 could open the path toward 1.1800 – 1.1850. This outlook strengthens if strong bullish candles and higher trading volume appear.
Bearish Scenario: If the price fails to overcome the current resistance and falls back below 1.1720, a correction toward 1.1650 and even the main support at 1.1530 becomes likely. A breakdown of this support would shift the market structure back into a clear bearish trend.
Read more about Price Action Trading
Conclusion
EUR/USD is currently trading at a critical zone where both buyers and sellers are competing for control. The 1.1720 – 1.1750 range will be decisive in determining the next major move. Traders should wait for either a breakout or a rejection from this level before entering new positions.
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