EURUSD Drill Down: Multi-Timeframe Trading Strategy

[Ben Graham]

How to Use Drill Down Analysis in Forex: A Multi-Timeframe Look at EURUSD

 

EURUSD Drill Down: Multi-Timeframe Trading Strategy

Successful forex trading requires more than just focusing on a single chart. Whether you trade on a 15-minute or 4-hour chart, you must understand the context provided by longer-term time frames. This approach is called drill down analysis, and it’s a favorite strategy of institutional and “real money” traders.

In this article, we’ll show you how to perform drill down analysis, apply it to EURUSD, and identify key levels and trends across timeframes to improve your trading decisions.

What Is Drill Down Analysis in Forex?

Drill down analysis means starting with a higher time frame chart (like monthly or weekly) and working your way down to shorter ones (such as 1-hour or 15-minute). The goal is to identify:

• Major trends
• Key support and resistance levels
• Macro and micro price patterns

By doing this, you place shorter-term moves in the proper context and avoid trading against the broader trend.

Step-by-Step: How to Perform Drill Down Analysis

1. Start With the Monthly Chart

• Identify the major trend
• Look for macro price patterns (e.g., multi-month candle formations)
• Mark long-term support and resistance levels

2. Move to the Weekly Chart

• Spot the medium-term trend
• Identify momentum shifts and key levels that align or diverge from the monthly chart

3. Analyze the Daily Chart

• Confirm whether the daily trend aligns with the broader trend
• Highlight potential retracement zones or breakout points

4. Zoom Into the 4-Hour Chart

• Look for continuation patterns or signals of potential reversal
• Mark levels that must hold to keep the broader trend intact

5. Fine-Tune Entry With Short-Term Charts (1H, 30M, 15M, 5M)

• Identify precise entry points based on trend confirmation or short-term reversal signals
• Always ask: Is this a move with the trend or just a retracement?

EURUSD Drill Down Analysis: June 2025 Outlook

Let’s apply this framework to EURUSD to see what the multi-timeframe analysis reveals.

EURUSD Monthly Chart

• Trend: Strong uptrend
• Pattern: Five consecutive bullish candles from the 1.0171 low
• Outlook: No nearby resistance or reversal signals. A monthly trend break would require a lower monthly high/low—not yet visible.

EURUSD Weekly Chart

• Trend: Bullish continuation
• Key Level: 1.1065 (well below current price)
• Outlook: No immediate threat to the uptrend

EURUSD Daily Chart

• Trend: Uptrend remains intact
• Key Support: 1.1445–1.1450
  Any meaningful dip above this level is likely a retracement, not a reversal.

EURUSD 4-Hour Chart

• Trend: Bullish
• Support: 1.1580-90: Minor stops could be triggered here, but major support lies at 1.1445–1.1450. A break below that would alter the broader picture.

EURUSD 1-Hour Chart

• Trend: Up
• Watch for a momentum shift– this timeframe can offer early clues on potential accelerations or corrections.

EURUSD 30M, 15M, 5M Charts

• Use for Entry Timing
  Shorter timeframes offer trading opportunities in both directions. The key is to stay aligned with the larger trend or recognize temporary corrections. Scalpers and intraday traders should always reference higher timeframes before entering trades.

Magic Trading Levels: A Range Perspective on EURUSD

Another way to view EURUSD is by using my “Magic Levels,” which define a dynamic range:

• Support Zone: 1.1500
• Resistance Zone: 1.1800
• Midpoint/Pivot: 1.1650

This gives us two range scenarios:

• Above 1.1650: Targets 1.1800 as the next pivotal level
• Below 1.1650: Retests 1.1500 as key support

These magic levels help frame short-term moves within a broader directional bias.

EURUSD: Trade With the Trend, Put the Price Action in Perspective

EURUSD is in a clear multi-timeframe uptrend with no significant signs of reversal as of June 2025. Any dip toward 1.1580-90 or even 1.1450 should be viewed as a buying opportunity, not a trend change unless key support levels are broken.

Use drill down analysis to stay grounded in the big picture while taking tactical entries on shorter charts. This approach helps avoid false signals and keeps you on the side of momentum and where odds are on your side..

 

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