EURUSD Analysis: Potential Bullish Movement on 4-Hour Chart
The previous month EURUSD was trading within a range. we have said in my previous analysis that the price will retest the 1.1130 before further bullish was fulfilled. As per the EURUSD daily chart, it is in a bullish move but traded in a range. In this condition, the price can break either side of the range. According to the Weekly chart, Price has broken the support at 1.1220 and then retests it. As the price is in a small range on the daily chart, we have to observe the price on the upper and lower boundaries of the range. But in the weekly chart, it has broken the support. So, it is expected the price will resume bearish movement and the target will be the lower boundary of the range 1.1120 if it can break the level then the next target will be 1.1045.
Daily Chart Analysis
Analyzing the EURUSD daily chart, we observe a bullish trend that is confined within a trading range. This range-bound activity suggests the possibility of the price breaking out in either direction. Traders should closely watch the upper and lower boundaries of this range to identify potential breakout opportunities. A decisive move beyond these boundaries will likely determine the next significant trend direction.
Weekly Chart Insights
On the weekly chart, there is a significant development where the price broke below the support level at 1.1220 and subsequently retested. This break and retest indicate a potential shift towards a bearish trend, despite the range-bound movement seen on the daily chart.
Considering this context, a bearish outlook becomes more compelling. If the price resumes its downward movement, the initial target is set at the lower boundary of the range at 1.1120. If this level is breached, the next target to watch is 1.1045.
Conclusion
In summary, while the EURUSD is currently trading within a range on the daily chart, the break of the 1.1220 support level on the weekly chart suggests a possible shift toward a bearish trend. Traders should carefully observe the price action at the key levels of 1.1120 and 1.1045 for further indications of the next major move.
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