Hi!
EUR/USD is trading within a well-defined descending triangle, a structure that typically reflects corrective price action rather than a strong trending environment. Price remains compressed between declining resistance and rising support, signaling a market in balance and approaching a decision point.
Within this broader structure, the market has formed a Head and Shoulders pattern (left shoulder, head, right shoulder), which has already played out to the downside. However, the bearish follow-through has been limited, suggesting weak downside momentum rather than aggressive distribution.
Currently, price is reacting around a key demand / reaction zone, where buyers have previously defended the market. From this area, two scenarios are technically valid:
As long as EUR/USD remains inside the triangle, the market should be treated as range-bound with directional uncertainty. A confirmed breakout from either boundary will be required to establish the next sustained directional move.
Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.
EUR/USD is trading within a well-defined descending triangle, a structure that typically reflects corrective price action rather than a strong trending environment. Price remains compressed between declining resistance and rising support, signaling a market in balance and approaching a decision point.
Within this broader structure, the market has formed a Head and Shoulders pattern (left shoulder, head, right shoulder), which has already played out to the downside. However, the bearish follow-through has been limited, suggesting weak downside momentum rather than aggressive distribution.
Currently, price is reacting around a key demand / reaction zone, where buyers have previously defended the market. From this area, two scenarios are technically valid:
- A minor bullish correction toward the upper boundary of the wedge, driven by short-term mean reversion.
- A continuation lower toward wedge support if price fails to build acceptance above the current zone.
As long as EUR/USD remains inside the triangle, the market should be treated as range-bound with directional uncertainty. A confirmed breakout from either boundary will be required to establish the next sustained directional move.
Disclaimer: As part of ThinkMarkets’ Influencer Program, I am sponsored to share and publish their charts in my analysis.
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🟢 Telegram channel: t.me/melikatrader94
🔴 Forex channel: t.me/melikatrader94GoldForex
Publicações relacionadas
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.