• EUR/USD bulls are in the market, but the trend could be ripening for a correction.
• Longs could face a squeeze into the end of the week and the charts below show the prospect of a correction. 

EUR/USD has climbed by over 0.8%, to trade at its highest since April 2022 as markets foresee European Central Bank hiking another 50bp before cutting rates by about 65bp in H2 2024. Sentiment around the Federal Reserve has shifted more dovish further out which is seeing a waterfall slide in the Greenback this week after inflation data came in lower than expected. 

EUR/USD weekly chart

The weekly chart's W-formation is still in progress with the right-hand arm heading higher into supply territory. 

EUR/USD daily chart

The daily chart's W-formation is over-extended, so there are fewer prospects of a move into the neckline. However, a 50% mean reversion is feasible. 

EUR/USD H4 chart

EUR/USD is showing no signs of deceleration on the 4-hour chart at this juncture. 

EUR/USD H1 chart

EUR/USD is petering out, perhaps, as per the hourly chart. The 38.2% ratio is in sight and breaking the 50% mean reversion area will likely set the scene for a deeper correction into London and New York.