EUR/USD, Technical Analysis – H4

The upward technical correction has reached its optimal height. The 1.1410–1.1420 zone contains the previously broken slanted support line, which now acts as resistance. In addition, a gap has formed below around 1.1380 and is likely to serve as a price magnet. Consequently, we expect the pair to reverse lower toward 1.1350 and 1.1300.

Key Levels:

□ 1.1410–1.1420 — Resistance (former slanted support)

□ 1.1380 — Gap / price magnet

□ 1.1350 — Primary target

□ 1.1300 — Extended target

Primary Scenario:

Decline toward 1.1390 and 1.1350.

Alternative Scenario:

Consolidation within the 1.1400–1.1420 zone.

Analyst Commentary:

High probability of a bearish resolution.