EURUSD - Top Down Analysis with Trade Idea

Taking a look at the 4H chart above, we can see price-action is still trending lower in a bearish channel. All eyes are focused on this Friday's PCE report to see if we're getting further evidence of inflation cooling off is the USA.

Let's now take a look at the daily timeframe.

== DAILY CHART ==

Taking a look at EURUSD on the daily timeframe, price-action is still under pressure with the current trend. Price-action is still closing below the last candles which leaves the next level of support in focus around the ascending channel support.

== WEEKLY CHART ==

RSI is still holding above 50 indicating that the bullish momentum is still in play on the weekly timeframe. Price-action is still trending in an ascending channel but if we break below this ascending channel support, it's likely at that point this pair will trend lower.

== LIKELY SCENARIO ==
Taking everything into consideration, it's likely this pair will continue to remain bearish at least until this Friday's PCE report.

Should the report come in negative, we may find some support off of this higher timeframe ascending channel.

== TRADE IDEA ==
Let's wait for this bearish momentum to stall out and begin scaling in with some long positions. As of right now, I'm not in this trade, I'm waiting for the bears to cool off, confirm some bottoming action for an entry on the long side.

That's it, that's all. Trade Safe