The EUR/USD H4 chart is currently developing a Bullish TOTAL 2 harmonic pattern[1.272/.707/.382/3.14], indicating that the recent bearish movement may be approaching exhaustion. Price has entered a significant Potential Reversal Zone (PRZ), where multiple Fibonacci extensions converge with historical support, increasing the probability of a technical rebound.
Although the medium-term trend remains bearish, harmonic completion zones frequently generate corrective rallies before the dominant trend resumes. Traders should monitor price action closely for bullish confirmation around the current support area.
Trend Overview: Bearish Correction Nears a Potential Turning Point
Following the strong bullish advance that reached the 1.2060–1.2070 region, EUR/USD entered a prolonged corrective phase marked by lower highs and lower lows. Selling pressure accelerated during the latest decline, pushing price into a major harmonic completion area.
Recent market structure shows:
- Continuation of the short-term bearish trend.
- Progressive loss of bullish momentum.
- Price reaching an important historical demand zone.
- Completion of a Bullish TOTAL 2 harmonic structure.
The current technical picture suggests sellers may be losing momentum as price approaches a strong confluence of Fibonacci projections.
Decoding the Bullish TOTAL 2 Harmonic Pattern (H4)
The chart identifies a Bullish TOTAL 2 harmonic formation, which combines multiple Fibonacci retracements and extensions to determine a high-probability reversal area.
The pattern completes near the 1.1390–1.1410 region, where several harmonic measurements overlap.
Main Harmonic Structure
| Point | Approximate Price |
|---|---|
| X | 1.1840 |
| A | 1.1435 |
| B | 1.1785 |
| C | 1.1580 |
| D (Completion) | 1.1390 – 1.1410 |
The projected reversal zone coincides with:
- 1.272 Fibonacci Extension
- 2.236 Fibonacci Projection
- 3.618 Harmonic Expansion
- Previous swing support
- Long-term trendline support
The overlap of these technical factors creates a robust Potential Reversal Zone (PRZ), often monitored by institutional traders.
Support and Resistance Levels
Support Zones
1.1390 – 1.1410
Primary harmonic completion zone and immediate support.
1.1350 – 1.1370
Secondary demand area if selling pressure continues.
1.1300 – 1.1320
Major long-term support and possible liquidity zone.
Resistance Zones
1.1480 – 1.1510
Initial resistance following a bullish reaction.
1.1580 – 1.1620
Important H4 structure resistance.
1.1730 – 1.1780
Major supply zone and previous swing highs.
Fibonacci Context
The Bullish TOTAL 2 pattern is supported by multiple Fibonacci measurements converging within a narrow price range:
- 1.272 Extension
- 2.236 Projection
- 3.618 Expansion
- AB=CD Harmonic Symmetry
- Retracement Cluster
Confluence between several Fibonacci ratios typically strengthens the reliability of harmonic reversal patterns and frequently attracts institutional order flow.
Risk Management and Trading Strategy
Primary Bullish Scenario
Entry Zone
1.1390 – 1.1410
Stop Loss
Below 1.1350
Profit Targets
- TP1: 1.1480
- TP2: 1.1580
- TP3: 1.1730
This scenario assumes buyers defend the harmonic completion zone and initiate a corrective recovery toward the nearest resistance levels.
Conservative Confirmation Strategy
Risk-averse traders may wait for confirmation before entering.
- Bullish engulfing candle on H4.
- Break above 1.1480.
- Formation of higher lows.
- Increase in bullish momentum.
Waiting for confirmation generally reduces false reversal signals.
Bearish Invalidation Scenario
A decisive close below 1.1350 would invalidate the Bullish TOTAL 2 pattern and could expose EUR/USD to further declines toward the 1.1300 area or lower.
Conclusion: Harmonic Completion Signals Possible Recovery
EUR/USD is currently testing one of the most important technical areas visible on the H4 chart. The completion of the Bullish TOTAL 2 harmonic pattern near 1.1390–1.1410 creates an attractive technical setup for a potential corrective rally.
Although the broader trend remains bearish, harmonic completion zones frequently produce high-momentum countertrend movements when confirmed by bullish price action.
Traders should watch for reversal candlestick formations, increasing buying volume, and confirmation above nearby resistance levels before considering long positions.
As always, technical analysis should be combined with macroeconomic developments, including European Central Bank decisions, Federal Reserve policy, inflation data, and employment reports, since these events can significantly influence EUR/USD volatility.
