Hello everyone, here is my breakdown of the current Euro setup.
Market Analysis
From a broader perspective, the price of EURUSD has shifted into a bearish phase after a prior Upward Channel failed and broke down. This reversal led to the formation of the current Downward Wedge, a pattern that has been guiding the price lower through a series of lower highs and lower lows.
Currently, the price is at a critical decision point. After bouncing from the lower part of the wedge, it has rallied correctly and is now directly testing the descending resistance line of the formation. This is a key area where sellers have repeatedly shown strength in the past.
My Scenario & Strategy
My scenario is based on the expectation that this Downward Wedge is a continuation pattern and the dominant downtrend will resume. I’m looking for the price to be rejected from the wedge’s resistance line. A confirmed failure to break higher would be the key signal that the next impulsive move down is about to begin.
Therefore, the strategy is to watch for this rejection. A confirmed reversal would validate the short scenario. The primary target for this move is the 1.1615 Support, which aligns with the major Support zone.
That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.
