EUR/USD is trading near 1.1216 on the four-hour chart shown in the latest TradingView setup, with the pair continuing to move lower after reaching approximately 1.1706 in late August. The technical picture points to sustained selling pressure, while the pair is approaching an important lower region that could determine whether the decline extends further or pauses for consolidation.
The chart, timestamped October 5, shows EUR/USD below its descending channel structure, with price moving along a clearly weakening trajectory from the September highs.
A sharp reversal from the August peak
The most significant feature on the chart is the reversal from 1.1706. After climbing through July and August, EUR/USD established a peak around that level before turning lower.
From the August high, the pair began forming a sequence of lower highs and lower lows. The decline accelerated through September, bringing the exchange rate back toward the 1.12 area by early October.
The orange channel line and surrounding dotted projections reinforce the broader downward structure visible on the four-hour timeframe.
| Chart reference | Approximate level |
|---|---|
| August high | 1.1706 |
| Current price shown | 1.12161 |
| Earlier marked low | 1.1325 |
| Major lower chart region | 1.1000 |
The move from 1.1706 to around 1.1216 represents a decline of roughly 4.2%, based on the levels displayed in the chart.
Price remains below the descending structure
The technical setup suggests that sellers have maintained control since the August peak. Price has repeatedly failed to regain the descending orange trend structure, while successive rebounds have been relatively limited.
The latest candles are positioned close to the lower boundary of the projected channel. That makes the area around 1.12 particularly important from a chart perspective.
A sustained move below this region would indicate that the downward structure remains intact. Conversely, a stronger recovery could bring the pair back toward previous resistance areas, where sellers may again become active.
The chart itself does not establish that either outcome will occur; it simply highlights the levels traders are likely to watch.
Liquidity levels add another layer to the picture
The chart also includes the LuxAlgo Liquidity Sweeps indicator. Several horizontal levels are marked around previous price areas, including zones above the current market.
Liquidity-sweep indicators are designed to highlight situations in which price moves through areas associated with previous highs or lows before reversing or continuing. These levels can help traders identify regions where market activity may increase.
In the current setup, much of the visible liquidity structure sits above EUR/USD's present price. That reflects the fact that the pair has moved substantially lower from its August high.
The presence of these levels should not be interpreted as a guaranteed reversal signal. They are reference points that require confirmation from subsequent price action.
The 1.13 area has already become significant
One of the chart's marked levels is around 1.1325. EUR/USD has since fallen below that area, making it an important reference point when assessing the recent decline.
If the pair attempts to recover, traders may monitor whether it can reclaim previously broken levels and establish support above them. Failure to recover those areas would leave the broader descending structure unchanged.
At the same time, the chart shows the price approaching the 1.10 region further below. This does not mean that EUR/USD is necessarily headed there, but the level represents an obvious reference within the displayed channel projection.
What the four-hour structure tells traders
The four-hour timeframe provides a medium-term view of the trend rather than a prediction of the next individual candle.
At present, the chart is characterized by three notable features: the reversal from 1.1706, a sequence of declining price swings, and the pair's position near the lower portion of the descending channel.
That combination leaves the 1.12 area as an important near-term technical zone.
A stabilization followed by higher highs could weaken the current bearish structure. Continued lower highs and fresh lows, however, would reinforce the existing trend.
For traders following EUR/USD, the key issue is therefore whether the market can establish a durable base around current levels or whether selling pressure pushes the pair toward the next lower technical region.
The chart provides a snapshot rather than a forecast, but its message is clear: EUR/USD's four-hour structure remains bearish until price action demonstrates a meaningful reversal of the current sequence of lower highs and lower lows.
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