EUR/USD forecast for February 4, 2021

Looking at the chart on the weekly time frame, we see that the EUR/USD pair is in a pullback from 1.23000 to the current 1.19900. Now the pair is in the zone around 1.20000 and a psychological level for investors. Technically looking at this time frame, we can track the following moving averages of the MA20 and EMA20, which have supported the pair towards higher levels. The break below may be a sign for us of a potential continuation of the current bearish trend. If we follow the Fibonacci retracement level, we see that the EUR/USD pair is now at 23.6%, around 1.19450. The break below takes us down to the next technical support at 38.2% Fibonacci level at 1.17000. We hope that support with MA20 and EMA20 will withstand 23.6% Fibonacci support for the bullish scenario.
We see that the EUR/USD pair is now in a bearish trend or a pullback on the daily time frame. On the upper side, our moving averages are MA20 and EMA20, as well as MA50, and based on that, and we can conclude that the pair will continue to lower levels, descending to EMA200 and MA200 at 1.18000. Based on the Fibonacci retracement level, we see that the EUR/USD pair will soon test the level of 23.6% at 1.19500, and here we can expect the first potential support and again the continuation to the bullish side. The break below the Fibonacci level of 23.6% gives us a sign to continue the pullback to 32.8% of the level at 1.17000.

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On the four-hour time frame, we see a bearish trend of 1.2350, now with confirmation of all moving averages at the top of the chart. When we set the Fibonacci retracement level in this time frame, we see that the EUR/USD pair is testing a 50.0% level at 1.19770. Marriage below that signals a potential continuation and decline to 61.8% Fibonacci level. The pullback forms a descending channel that opens downward, directing the chart and trend in a particular direction. If the zone at 50.0% level lasts, we need at least a break above 38.2% at 1.20700 and a turn of moving averages.