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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?
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