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EUR/USD – Technical Analysis – 4h

January 23, 2026 08:03

Quick Summary

The EUR/USD 4-hour chart shows signs of a potential bullish reversal. Recent candlestick patterns, such as a bullish engulfing, support this potential change in trend direction. However, some consolidation is noticed, which requires careful monitoring.

Candlestick Analysis

A bullish engulfing pattern has appeared, indicating a reversal from the recent downtrend.

Doji candlesticks are present, suggesting market indecision at the current level.

The trend is showing signs of shifting from bearish to bullish with the formation of higher lows and highs.

MACD Analysis

The MACD line is positioned above the Signal line, reflecting bullish momentum.

A bullish crossover was recently observed, which supports upward price movement.

The MACD histogram hints at reduced bullish momentum, suggesting possible consolidation or a pullback.

Volume Analysis

Volume increased significantly during the recent bullish move, indicating strong buying interest.

Volume levels are now decreasing, aligning with a consolidation phase.

Volume spikes suggest potential participation from institutional traders during the recent rally.

Support & Resistance

Key support is found at 1.1700, crucial for sustaining the uptrend.

Immediate resistance is located at 1.1750, and breaking this could lead to further upside.

Additional resistance may occur around 1.1800.

Actionable Insights

Consider buying on a confirmed breakout above 1.1750 with strong volume, aiming for resistance at 1.1800.

Look for a bearish reversal pattern near current levels for potential short opportunities targeting 1.1700.

If long, maintaining positions with a trailing stop below 1.1700 could be safe.

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