EUR/USD is one of the most traded and closely watched currency pairs in the forex market. Its price movements are constantly influenced by both fundamental and technical factors. In this analysis, we’ll focus on the 4-hour chart to identify key supply and demand zones, recent price behavior, and short-term expectations.
Technical Analysis EURUSD
1. Key Supply and Demand ZonesThe
chart highlights two significant zones:
Supply Zone (Red Area): This zone is located approximately between 1.16300 and 1.16900. It has acted as a strong resistance multiple times in the past, pushing the price downward whenever it reached this area. It’s a high-interest selling zone.
Demand Zone (Green Area): This zone lies between 1.13700 and 1.14500. It has provided strong support on several occasions. The most recent reaction from this zone resulted in a sharp bullish move, indicating aggressive buyer activity.
2. Recent Price Behavior
After a strong bearish movement, the price entered the demand zone and immediately reacted with a powerful bullish candle. This sharp bounce signals the presence of strong buy orders and bullish momentum around the 1.14–1.14500 level, pushing the price up to the 1.15870 area.
3. Short-Term Outlook
Currently, the price is moving toward the midpoint between the supply and demand zones. If bullish momentum continues, the price is likely to test the supply zone around 1.16300–1.16900. Traders should be cautious in this area, as it could trigger a pullback or even a full reversal.
Fundamental Analysis can be a help while you trade through Technical Analysis
However, if the price fails to break intermediate resistance levels and starts dropping again, the demand zone below could act as support for a potential retest.
Conclusion
Based on this technical outlook:
The demand zone has provided strong support and initiated a bullish rally.
If momentum holds, a move toward the supply zone is likely.
Until a clear breakout occurs from either zone, price will likely range between these two levels.
Traders should exercise caution and wait for confirmation signals before entering positions. Proper risk management and patience are key when trading within this kind of range-bound environment.
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