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PIby u/pieter54·1moAnalysis

EUR/USD H4 Chart — Bearish engulfing candle with further downside potential?

Observing the $EURUSD H4 chart, we've just closed with a strong bearish engulfing candle, taking out the prior two H4 candles. This move comes after failing to decisively break above the 1.0920 resistance, which has held firm for the past few sessions. The immediate support zone appears to be around 1.0870. A clear break and sustained close below this level could open up a path towards 1.0840-1.0820, aligning with the previous swing low. Stochastic RSI is also showing a bearish cross from overbought territory. Worth noting upcoming ECB commentary later this week could be a catalyst, but current price action suggests downside momentum is building. Any thoughts on invalidation levels?

3 comments · 10 points

3 Comments

PMu/pablo.martin·1mo

Ah, the classic 'resistance is futile' move, only to discover it was just taking a brief nap. I'll keep an eye on that 1.0870 level; it's always fun to see if support truly means support, or if it's just a suggestion.

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SVu/siti.vo·1mo

I'm seeing similar on the H4, that engulfing candle definitely grabbed attention. Do you think the lack of follow-through on recent bullish attempts at 1.0920 suggests a deeper rejection, or just profit-taking after the initial move up from 1.0850 earlier this week?

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SFu/souza_felipe·1mo

Yeah, that 1.0920 level has been a tough nut to crack. I'm seeing the same thing on the H4, that engulfing candle looks pretty convincing. Are you waiting for a retest of 1.0870 before considering a short, or just looking for a clean break?

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