Market Report – February 4, 2026
EUR/USD
Overall Sentiment:
Bearish – EUR/USD has shifted into short term bearish sentiment over the last hours following a sharp impulsive rally that failed to sustain higher levels. Price is now consolidating below recent highs, signaling profit taking and weakening bullish momentum. The rejection from the upper levels suggests sellers are regaining short term control. As long as price remains capped below resistance, downside pressure may persist.
Transition Zones:
1.16300 to 1.16600 – Bullish Transition Zone.
This lower transition zone represents a strong demand area where buyers previously stepped in aggressively. A revisit into this zone would be closely watched for potential stabilization or renewed buying interest.
1.17540 to 1.17865 – Bearish Transition Zone.
This upper transition zone now acts as a key supply area after the recent rejection. Failure to reclaim and hold above this zone keeps the short term bearish bias intact.
Dynamic Support/Resistance Levels:
Price: 1.17640
This level is acting as immediate resistance following the breakdown. Price acceptance below it reinforces short term downside risk.
Price: 1.16170
This lower level defines the next major support if selling pressure accelerates. A clean break below it would confirm a deeper corrective phase.
Commentary:
The recent pullback appears corrective after an extended bullish move, rather than a full trend reversal at this stage. Volume dynamics indicate reduced buying strength near the highs. Short term price action favors consolidation or further downside toward lower support areas. A shift back above key resistance would be required to restore bullish momentum.
Read the full Market Report:https://forexanalysis.com/market-report-february-4-2026/.
EUR/USD
Overall Sentiment:Bearish – EUR/USD has shifted into short term bearish sentiment over the last hours following a sharp impulsive rally that failed to sustain higher levels. Price is now consolidating below recent highs, signaling profit taking and weakening bullish momentum. The rejection from the upper levels suggests sellers are regaining short term control. As long as price remains capped below resistance, downside pressure may persist.
Transition Zones:1.16300 to 1.16600 – Bullish Transition Zone.
This lower transition zone represents a strong demand area where buyers previously stepped in aggressively. A revisit into this zone would be closely watched for potential stabilization or renewed buying interest.
1.17540 to 1.17865 – Bearish Transition Zone.
This upper transition zone now acts as a key supply area after the recent rejection. Failure to reclaim and hold above this zone keeps the short term bearish bias intact.
Dynamic Support/Resistance Levels:Price: 1.17640
This level is acting as immediate resistance following the breakdown. Price acceptance below it reinforces short term downside risk.
Price: 1.16170
This lower level defines the next major support if selling pressure accelerates. A clean break below it would confirm a deeper corrective phase.
Commentary:The recent pullback appears corrective after an extended bullish move, rather than a full trend reversal at this stage. Volume dynamics indicate reduced buying strength near the highs. Short term price action favors consolidation or further downside toward lower support areas. A shift back above key resistance would be required to restore bullish momentum.
Read the full Market Report:https://forexanalysis.com/market-report-february-4-2026/.
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