EUR/USD – Technical Analysis – 4h

The chart shows a recent downtrend transitioning into a potential uptrend. The series of higher lows and higher highs indicate a shift toward bullish sentiment.

There is a visible bullish engulfing pattern in the recent section, signaling a potential reversal from the previous bearish trend.

Some candles exhibit long lower wicks, suggesting buying pressure and support at lower levels. A recent breakout above the previous resistance zone around 1.1600 suggests the beginning of a new upward move.

The MACD line has crossed above the Signal line, indicating a bullish crossover. This suggests upward momentum.

The histogram is increasing positively, reinforcing the presence of bullish momentum.

There doesn’t appear to be any significant divergence between the MACD and the price action at this time.

Volume appears to have increased during the recent up-moves, supporting the bullish price action.

Noticeable volume spikes during upward price movements may suggest institutional participation and stronger commitment to the trend.

The volume analysis supports the observed price momentum, backing the shift towards a bullish trend.

Key support is identified around the 1.1600 level, where previous resistance was broken.

Potential resistance is now seen around 1.1750, which previously acted as a support level during the downtrend.

Monitoring these levels can help assess the strength and continuation of the potential uptrend.

Consider entering long positions now or on a pullback to the 1.1600 support zone, confirming continued bullish momentum.

Watch for potential reversals near the 1.1750 resistance level to exit longs or enter shorts if bearish signals appear.

Monitor for sustained volume and momentum (via MACD) to confirm the strength of the new uptrend.