EUR/USD 4H: sell the pullback into the broken 1.1120–1.1135 range floor
FXFibo editorial · · 1 min readOn the 4-hour chart, EUR/USD has broken the floor of its one-month 1.1120–1.1260 range. The main scenario is a brief pullback into the broken floor (1.1120–1.1135), followed by a further decline towards 1.1050 and 1.0990.
Main scenario
The range floor, which held several times, has now broken and should act as resistance on a pullback. Sell in the 1.1120–1.1135 zone with a stop above 1.1175. Target 1 is 1.1050 and target 2 is 1.0990.
Alternative scenario
If price moves back inside the range and holds above 1.1175, the break was false and price may return to the 1.1250–1.1260 range top.
Key levels
Resistance: 1.1120–1.1135 — 1.1175 — 1.1250–1.1260 Support: 1.1065 — 1.1050 — 1.0990
Market-moving events
US inflation data, Fed speakers
EUR/USD traded between 1.1120 and 1.1260 for about a month. The last test of the range top met heavy selling, and price broke the range floor with strong bearish candles. After such a break, price usually returns to test the broken level. If the pullback comes with weak candles, it is a good opportunity to sell again.