FX.co ★ EUR/USD

EUR/USD Technical Analysis (H1 Timeframe) Based on the provided H1 chart for EURUSD, the pair appears to be consolidating after a significant downtrend, with the current price action suggesting a critical juncture. The most recent candle, closing at 1.1724 after probing a low of 1.1719, has formed a near-perfect Doji candlestick pattern. This indicates a state of equilibrium between buyers and sellers at these levels, following a sharp decline from the 1.1820 high. The Doji, occurring just above a clearly defined support level at 1.1723, signals potential exhaustion of the selling pressure and the possibility of a short-term bullish reversal or a more prolonged pause in the downtrend. A definitive close below this support, confirmed by a follow-through candle, would offer a high-probability sell signal, while a rejection and bounce from this area could see a short-covering rally back towards the range's upper boundary.

The broader context, however, remains bearish. Price has fallen decisively from the 1.1820 peak, breaking through several previous support levels that have now turned into resistance, notably in the 1.1740 to 1.1760 zone. For any meaningful recovery to occur, bulls must defend the current 1.1723 support and generate sufficient momentum to push through this resistance band. A failure to hold 1.1723 would likely trigger a further decline towards the next significant support targets near 1.1680 and 1.1660. Therefore, traders on the H1 timeframe should monitor the reaction at this key support. A bullish engulfing candle following the Doji would confirm a potential long entry, while a break and close below 1.1719 would reinforce the prevailing bearish bias, targeting the lower levels of the displayed range.