Trade Analysis Report: EUR/USD

Overview:
The EUR/USD pair is currently exhibiting a potential continuation of the downtrend, as seen on both the weekly and 4-hour timeframes. The weekly chart shows a Flat ABC correction or Flag structure, which now aligns with a flag correction on the 4-hour chart. This flag, combined with hidden divergence, further confirms a shorting opportunity as the market prepares to continue its bearish movement.

Overview:
The EUR/USD pair is currently exhibiting a potential continuation of the downtrend, as seen on both the weekly and 4-hour timeframes. The weekly chart shows a Flat ABC correction or Flag structure, which now aligns with a flag correction on the 4-hour chart. This flag, combined with hidden divergence, further confirms a shorting opportunity as the market prepares to continue its bearish movement.

Technical Analysis:
Weekly Timeframe:
Flat ABC Correction/Flag Structure:
The weekly chart reveals a corrective phase in the form of a Flat ABC correction or Flag pattern, with wave C anticipated to drive prices lower.
The completion of wave B and the anticipated development of wave C suggest a strong bearish continuation, providing a high-probability shorting setup.
4-Hour Timeframe:
Flag Correction:

On the 4-hour chart, a flag correction has formed, which is typically a continuation pattern indicating the potential for further downside movement.
The price action within the flag is consolidating, likely preparing for a breakout to the downside, in line with the overall bearish outlook on the weekly timeframe.

Hidden Divergence:
Hidden divergence between the price and momentum indicators (such as RSI or MACD) on the 4-hour chart further supports the likelihood of a continuation of the downtrend.
The hidden divergence occurs when the price makes lower highs while the indicator makes higher highs, suggesting that the recent consolidation is a pause before the next leg down.

Trade Setup:
1. Short Position Setup:
Entry:
Consider entering a short position below the 1.08824 price level of the 4-hour flag pattern or upon confirmation of a breakout to the downside of the 1.08824.
Target:
Target the completion of wave C on the weekly chart, which could align with significant support levels identified on both the 4-hour and weekly charts.
Stop-Loss:
Place a stop-loss above the upper boundary of the flag pattern to manage risk. This stop should be above the recent highs or the invalidation level of the flag.