Today on EURUSD – Daily and H4 charts support Short trades, but…

On the Daily chart above, on Wednesday last week, the bulls, seeking to make a new year-high, met fierce resistance less than 20 pips below the current year-high and, at that time, the most recent Daily swing high @ 1.5061 (which we’ve highlighted using the upper blue broken line). As a result, price reversed at 1.5047, formed a reversal candle – Doji (pointed out by the right green arrow), moved further downward, and eventually resulted in the formation of the most recent Daily swing high @ the 1.5047 level. This price action created a potential “double top” formation – the “first top” (pointed out by the left green arrow) being the year-high @ 1.5061, and the “second top” (pointed out by the right green arrow) being the most recent Daily swing high @ 1.5047. A Double Top in a strong bullish trend signifies a possible, major bearish move.
Although, the potential Double Top, by itself, isn’t strong enough to nullify the longer term bullish bias (as further bearish actions are still necessary), from a day-trade perspective, it supports a day-trade bearish bias, which was “instigated” by a recent price action: before the close of yesterday’s candle, price breached the most recent Daily swing low @ 1.4820 (which we’ve highlighted using the lower blue broken line) – a good sign that the bears want to push further downward. However, though, from a day-trade perspective, our bias is bearish, we would like price to break below previous day’s low @ 1.4807 (not highlighted). Price is currently a considerable distance away from breaking this 1.4807 support, hence, we might have to exercise patience throughout today on this pair.

On the H4 chart above, earlier, price broke a recent swing low @ 1.4879 (which we’ve highlighted using the upper blue broken line) downward. That automatically shifted our bias in favor of a downward price move. However, in relation to our bearish bias, price is currently in a bullish retracement, and, consequently, as discussed on the Daily chart, it is a considerable distance away from breaking the earlier mentioned previous day’s low @ 1.4807 (that we’ve highlighted using the lower blue broken line), which is seen on the H4 chart as the most recent swing low. Again, in seeking Hourly Short trades, we might have to exercise patience, possibly throughout today, on this pair.
The white horizontal line @ 1.5015 highlights the most recent swing high, and as long as price stays below it – in the absence of any new and lower swing high – our bearish or downward bias remains intact.