EURUSD: Triangle Structure Points to Possible Drop Toward 1.1590

Jun 5

Hello everyone, here is my breakdown of the current EURUSD setup.

Market Analysis

EURUSD previously traded inside a broad downward channel while also forming a large triangle pattern. After breaking above the triangle resistance, price rallied into the 1.1660 resistance zone and reached a local peak within the descending channel structure.

Currently, EURUSD is trading between the 1.1660 resistance zone and the 1.1590 support zone. Price recently failed to hold above resistance, creating another rejection near the upper boundary of the triangle resistance line. At the same time, the ascending triangle support line continues to provide short-term support, keeping the market in a compression phase.

My Scenario & Strategy

As long as EURUSD remains below the 1.1660 resistance zone and continues to respect the triangle resistance structure, the bearish scenario remains valid. A rejection from current levels could push price toward the 1.1590 support zone (TP1).

However, if EURUSD breaks above the 1.1660 resistance zone and confirms a breakout of the triangle resistance, the bearish outlook would weaken and a stronger bullish continuation could develop.

That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.

Jun 7

Trade closed: target reached

As we can see, the expected retest of support has taken place and we have reached the level. Also, the price broke the support level and the triangle structure, which may indicate the weakness of buyers in the market!