Greetings dear traders, today we come with a technical analysis for the EURUSD pair. Let’s dive into the analysis.
EURUSD Technical Analysis on H1 chart for December 17, 2024:
The Euro against the U.S. Dollar (EURUSD) is showing weakness as the pair struggles to hold above key trendline support on the 1-hour chart. After consolidating within a tight range for the past few sessions, sellers have taken control, pushing the price lower and breaking below the rising trendline. This signals a potential shift in momentum towards the downside.
EURUSD Technical Overview
- Current Price: 1.04850
- Key Resistance: 1.05192 (blue horizontal line)
- Key Support: 1.04600 (blue dashed line)
- Trendline Break: The orange rising trendline that previously offered support has now been breached, confirming bearish pressure.
EURUSD Market Outlook
The breakdown of the ascending trendline suggests that the bulls have lost momentum, and sellers are now targeting the next significant support at 1.04600. If this support level fails to hold, we could see an extended move to the downside, potentially testing lower levels.
1️⃣ EURUSD Bearish Scenario 📉
- With the trendline break, sellers are likely to remain in control.
- A sustained move below 1.04850 increases the chances of testing the critical support at 1.04600.
- If 1.04600 is breached, the bearish momentum could accelerate, pushing the price further down towards new lows.
Volume and Price Action
The recent downward movement has been accompanied by a noticeable increase in volume, which confirms that sellers are actively driving the market. Watch for how price reacts at the 1.04600 support zone – a bounce here could attract buyers, while a clear breakdown would encourage further bearish pressure.
Trading Focus
- Short-term traders may look for selling opportunities below the 1.04850 mark, targeting the next support at 1.04600.
- Buyers should wait for a clear signal of reversal, such as a break back above the trendline or a bullish reaction at key support levels.
💬 What’s your outlook for EURUSD? Will the pair hold above 1.04600, or will sellers take it lower?
Don’t forgot to share your thoughts about this analysis in the comments!