The EUR/USD pair remained confined to a tight consolidation range, holding above the 1.1500 support area and below the 1.1550 resistance level.
Technical Outlook – 4-Hour Timeframe
Downward pressure persists as the pair continues to move beneath a descending trendline, with price action also trading below key simple moving averages acting as dynamic resistance. The RSI shows an overbought condition relative to recent price movement, indicating a potential bearish divergence and limiting the chances of a sustained upside attempt.
Most Likely Technical Scenario
Provided the pair remains below 1.1560, and more importantly under 1.1575, the bearish outlook stays intact. A break below 1.1510 would expose 1.1485 as the first downside target, with further weakness potentially extending toward 1.1455.
Alternatively, a stable move above 1.1575 could trigger a temporary recovery, opening the path for a retest of the 1.1620 resistance area.
Note
High-impact U.S. data is due today, specifically the monthly and annual PPI, which may trigger increased volatility around the release time.
Risk Disclaimer: Trading CFDs involves risks, and therefore the scenarios outlined above are not a recommendation to sell or buy but rather an explanatory reading of price movement on the chart.
| S1: 1.1485 | R1: 1.1545 |
| S2: 1.1455 | R2: 1.1575 |
| S3: 1.1400 | R3: 1.1620 |
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