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EUR/USD – Technical Analysis – 4h

December 25, 2025 08:02

Quick Summary

The chart of Asset represents a bullish trend with higher highs and higher lows.

A noticeable bullish engulfing pattern on December 17th further supports this.

Candlestick Analysis

The chart exhibits a clear bullish trend with higher highs and higher lows, indicating upward momentum.

There is a noticeable bullish engulfing pattern around December 17th, which is a strong bullish reversal sign.

Recent pullback around the 1.17800 level suggests a possible consolidation or correction phase. Watch for a breakout above this level for continuation.

MACD Analysis

The MACD line is slightly above the Signal line, following a recent bullish crossover, indicating potential continuation of upward momentum.

It shows waning positive momentum with the histogram bars decreasing, suggesting that bullish strength might be losing steam.

No clear divergences observed between MACD and price action, but attentiveness to upcoming movements is needed.

Volume Analysis

There are no significant spikes or drops in volume, indicating that recent price movements may lack strong conviction.

The lack of substantial volume on recent up moves suggests caution as it might not be strongly supported.

Support & Resistance

Key support around 1.17000, where previous consolidation levels were observed.

Immediate resistance at the 1.17800 level, which if broken with volume, could signal further upside.

Actionable Insights

Consider buying upon a breakout above 1.17800 with increased volume for confirmation.

Watch for bearish candlestick patterns or a bearish MACD crossover as signals to short, especially near resistance.

Holding might be advisable as long as the MACD indicates bullish momentum.

The AI Technical Analysis Center is an informational tool only and does not constitute investment or trading advice.
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