![[Sharp Reversal in EUR/USD!?] Risk of falling back to the 1.11 range after stalling at 1.1250!](https://fixiomarkets.com/storage/Article/4uBGNP82RM2PewYe79UXqdBijIvZKBT4e3WWY9Ol.jpg)
EUR/USD is currently trading around 1.1204, with the previous day's upward trend coming to a pause. After a pullback from the 1.1250 level, the focus now shifts to whether the pair can hold the key 1.1200 support. Technically, the short-term bullish momentum is fading, as suggested by a slowing ADX and narrowing DMI lines. Depending on future price action, the support zone around 1.1150–1.1120 may come back into play.
EUR/USD retreated upon approaching the 200-hour moving average (red line), which is now acting as a strong resistance level. Meanwhile, the 50MA (blue line) is providing support, but the weakening price momentum signals a possible downside break that should not be ignored.
The ADX at the bottom of the chart has flattened out after peaking during the recent uptrend and is now hovering around 0.18, suggesting the trend is losing strength. Although the +DI (green line) spiked temporarily, it is slowing again and converging with -DI, indicating that bullish momentum is gradually fading.
Volume, which had been increasing during the rally, is now trending downward, reflecting reduced buying participation. Notably, the decline in volume accompanied by bearish candlesticks suggests growing uncertainty, increasing the likelihood of a short-term correction.
※Image source: cTrader platform
Traders should base their EUR/USD strategy on the following key levels and technical factors:
Bearish Scenario (Correction Play)
Entry: Short entry after confirming a break below 1.1200
Target: 1.1150–1.1120
Stop Loss: Above 1.1225
Bullish Scenario (Bounce Play)
Entry: Long entry after confirming support between 1.1200–1.1180
Target: 1.1245–1.1250
Stop Loss: Below 1.1170
EUR/USD is currently in a pullback phase after a short-term rally, with the battle around 1.1200 drawing attention. Given the position of the moving averages and the behavior of ADX and DMI, buying pressure appears to be weakening. Traders should maintain flexibility by considering both buy-the-dip and sell-the-rally opportunities. As this may signal the start of a trend reversal, close attention to volume and momentum changes will be crucial for building a sound trading strategy.
This article is for informational purposes only and does not constitute a recommendation to buy or sell any financial product. All trading decisions should be made at your own discretion.
For the latest technical analysis and economic updates, visit the FIXIO Forex Blog.
This article is intended for informational purposes only and does not constitute financial or investment advice. The analyses and strategies mentioned are based on past data and current market conditions, and may be subject to change in the future. When making investment decisions, always conduct your own research and consult a professional if necessary.
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