EURUSD Breakdown, 9th December – Action Forex

This Monday, as part of the weekly market review and analysis, we examined the price action on the EURUSD chart across the different timeframes. While the short-term direction appears to be bearish, the long-term sentiment remains bullish, especially on the weekly and daily timeframe charts. Here is my interpretation of the price action on these timeframes.

EURUSD – H4 Timeframe

The EURUSD price action on the 4-hour timeframe chart is consolidating within a channel. The confluence region of the supply zone and the trendline resistance have recently reacted, although the price seems to be returning to the area of interest. In this case, the lower timeframe could provide insights into whether or not the price action has sufficient momentum to break above the area of interest.

H1 Timeframe

On the 1-hour timeframe chart of EURUSD, we see that the initial reaction from the supply zone created a double break-of-structure pattern, confirming increased bearish momentum. In the meantime, the price is expected to retest the 76%—88% area of the Fibonacci retracement tool before the bearish sentiment resumes. The primary target is the highlighted demand zone overlapping the trendline support.

Analyst’s Expectations:

• Direction: Bearish
• Target: 1.05045
• Invalidation: 1.06555