EURUSD Weekly analysis 10 January
Quick Summary
On the daily timeframe the overall trend is still bullish
However, signs of weakness are appearing after a liquidity sweep of the previous high
Price is likely targeting the fair value gap at 1.14597
Lower timeframes support further downside but also leave room for a potential continuation of the higher timeframe uptrend
Full Analysis
On the daily timeframe EURUSD is still moving within a bullish structure and the primary trend has not been fully broken
Despite that there are warning signs that should not be ignored
A sweep of liquidity has already occurred above the previous high which often signals weakening bullish momentum
From this perspective EURUSD appears to be targeting the fair value gap at 1.14597
This makes buying in the current area difficult as downside objectives are still active
On the H4 chart price has formed an internal choch along with a clear orderflow structure
This combination supports the idea of continued downside movement in the short to medium term
At the same time this bearish behavior could also act as a liquidity driven move that later supports continuation of the broader bullish trend
On the hourly chart the descending price channel is much clearer
This channel will be key in determining whether price continues lower or starts reversing while respecting the higher timeframe bullish structure
Overall EURUSD is currently in a conflicted state across timeframes
The daily trend remains bullish but lower timeframe structure supports additional downside
The next reaction inside the hourly channel will likely clarify whether this move is a deeper correction or the beginning of a larger shift in market behavior