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.
Currently, the price is at a critical decision point. After a complex series of moves, it is now testing the lower support line of the wedge, which aligns with the major Support at the 1.1615 level.
My Scenario & Strategy
My scenario is built on the idea of a ‘fake breakdown’ at this key support. I’m looking for the price to dip briefly below the wedge’s support line into the Support zone to hunt for liquidity, and then quickly reverse.
A swift reclaim of the wedge’s interior would be a powerful signal that sellers are exhausted and a bullish reversal is underway. This is the key confirmation I am waiting for.
Therefore, the strategy is to watch for this reclaim. A successful reversal would validate the long scenario. The primary target for the subsequent rally is the Wedge Resistance Line at the 1.1670.
That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.
