As we approach the conclusion of the first half of 2025, it appears that the most actively traded currency pair within the global foreign exchange (forex) market is poised to maintain its bullish momentum following a period of short-term consolidation. In this article, we will explore the euro’s relationship with the U.S. dollar. This pairing has attracted considerable interest from traders and investors. Our analysis will cover different time frames, including the 4-hour, daily, and weekly charts. This approach will help us gain a complete understanding of market dynamics. Additionally, we will focus on the technical developments that have arisen. We will also discuss strategies to navigate the expected future direction of this currency pair. This multifaceted approach aims to equip readers with the insights necessary for informed trading decisions.
EUR/USD 4 Hour Technical Developments
The EUR/USD currency pair has recently entered a descending channel on the 4-hour chart. This technical pattern indicates a prevailing bearish sentiment in the market. Currently, the pair is trading below the trending indicator cloud. This suggests that further losses may be ahead. This combination of factors underscores the potential for continued downward pressure on the currency pair.
Traders should be particularly attentive to the key support and resistance levels that have emerged in this context. The identified support levels are at 1.1060 and 1.090, while resistance levels are situated at 1.12 and 1.1350. As long as the EUR/USD stays below these key levels, short-term bearish traders will likely control the market dynamics. It is important for traders to monitor higher time frames, particularly the weekly chart. This can offer valuable insights into longer-term trends and possible reversals.
EUR/USD Daily Technical Developments
The daily chart showing the euro against the U.S. dollar, commonly known as the greenback, supports the current views of short-term bears. This aligns with the findings from the 4-hour chart analysis. The relative strength index (RSI) shows a bearish divergence. This suggests that the momentum supporting the euro’s recent performance may be decreasing. Therefore, any future increases in the euro’s value should be viewed with caution. These movements may offer good selling opportunities.
EUR/USD Weekly Technical Developments
Upon reviewing the weekly chart, it is clear that the EUR/USD currency pair is at a crucial point. It has bottomed out at the 100 percent Fibonacci extension of its recent high-low-high range. This crucial moment has not only pushed the pair higher but has also led to a clear break above its downward weekly trend line. This trend line has been firmly in place since July 2023. The price movement from July 2022 to April 2025 shows a significant consolidation phase. This suggests that market participants have been in a long period of indecision and accumulation.
As we look to the future, it is crucial for investors and traders to pay attention. They should closely monitor the Sigmanomics time zone anticipated in November 2027. This timeframe is expected to be a major turning point, likely bringing significant changes in market dynamics. Understanding these technical indicators is crucial. They provide valuable insights. This knowledge can help investors make informed decisions in the evolving foreign exchange market.
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Ronald Francois
Ronald is a senior market strategist at Sigmanomics.com, bringing over a decade of hands-on experience in equity markets and three years of specialized expertise in options trading. Known for his sharp fundamental analysis and deep understanding of macroeconomic trends, Ronald provides readers with actionable insights that bridge the gap between institutional strategy and individual investor needs.
