EURUSD, Forming The Massive Potential Top-Formation!

Hello Traders Investors And Community,

Welcome to this analysis where we are looking at EURUSD 4-hour timeframe perspective, the recent events, the current formational structure and what to expect the next times. EURUSD is now trading in a longer time somewhat in a sideways marked where it possibly builds up a potential top-formation I detected here in this case I found the important levels and ranges we should consider at the moment in order to anticipate the next outcomes and destiny of this pair.

Looking at my chart you can watch there that EURUSD is trading in this huge descending channel marked in blue where the price is consolidating and already touched the upper and lower boundary several time, furthermore the movements in this channel are slowing down in volatility they get slower and slower, therefore, the possibility for a bullish continuation decreases as the volatility is just not strong enough to sustain. Currently, EURUSD is building this wave count where the wave B is forming and ending in a possible short-entry-zone marked in red in my chart, when this zone confirms bearish to the downside there is a higher possibility given for the breakdown of the channel-formation with aiming the targes at the 300-EMA marked in red in my chart, this mechanism can only be invalidated when EURUSD moves above the middle-line and then closes above the important and meaningful upper boundary to move further, this outcome, however, is at the moment, not the most possible one.

When EURUSD shows up with the more likely bearish scenario it has to be elevated how this pair reacts when touching the 300-EMA target zone and if there is a reversal forming or more declines will follow. The bearish breakdown can best be traded with the entry in a decisive close below the lower boundary of the channel, it will be interesting to see how this is playing out the next times and how EURUSD reacts in the ceratin zones.

In this manner, thank you for watching, support for more market insight, good weekend to you and all the best!
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Information provided is only educational and should not be used to take action in the markets.