Hi Traders! EURUSD technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! In this pair we are going to perform the top – down analysis in order to find possible trading opportunities. Let’s start our analysis now from the highest timeframe which will be the daily chart here.
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EURUSD D1(Daily) Chart Analysis – Key Resistance Zone, Bearish Divergence
On the daily chart, the price reached a key resistance zone that has formed based on the 161.8%(1.11929) Fibonacci expansion level of the first wave. The price respected this key resistance zone and is currently bouncing lower from it. Also, we have a bearish divergence that has formed between the first high formed at 1.12003 and the second high formed at 1.12134 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, there are no signs opposing this short term bearish view at the moment. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
EURUSD H4(4 Hours) Chart Analysis – Bearish Divergence, Most Recent Uptrend Line Breakout
On the H4 chart, the price which was moving higher created a bearish divergence that has formed between the first high that has formed on 17th September 2024 and the second high that has formed on 30th September 2024 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. So everything looks good here as well for the bears and until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further.
Technical Analysis & Forecast Summary
EURUSD D1(Daily) Chart Analysis
- Key Resistance Zone, Bearish Divergence
EURUSD H4(4 Hours) Chart Analysis
- Bearish Divergence, Most Recent Uptrend Line Breakout
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
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Arvinth Akash
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