Hello everyone, here is my breakdown of the current EURUSD setup.
Market Analysis
EURUSD is transitioning out of a prolonged bearish phase that previously unfolded inside a well-defined downward channel. After forming a major swing low in early November, the pair initiated a recovery and gradually shifted into a corrective bullish structure. Price is now trading inside a developing triangle formation, defined by the ascending Triangle Support Line and the descending Triangle Resistance Line. During the decline, the market repeatedly respected the key Support Zone around 1.16200, which acted as a strong demand area and triggered bullish reactions on multiple occasions. Most recently, EURUSD completed a clear Head and Shoulders reversal pattern near the lower boundary, signaling exhaustion of sellers and the start of buyer control. Following this structure, price broke above the support zone and is now consolidating above it, confirming the zone as a valid demand base.
Currently, the pair is approaching the major Resistance Zone at 1.16800, which also aligns with the descending triangle resistance. This area remains the key upside barrier for buyers and represents a critical decision point for the market.
My Scenario & Strategy
My scenario is bullish, as long as price remains above the 1.16200 Support Zone and continues respecting the ascending Triangle Support Line. I expect EURUSD to maintain upward pressure and attempt a breakout toward the 1.16800 resistance, which is the next major supply area. A clean breakout above this zone would confirm bullish continuation and open the way for further upside toward higher targets.
However, if price reaches the resistance and shows strong rejection, a corrective pullback back toward the 1.16200 demand may occur. Still, the overall bullish structure remains valid as long as the support zone holds. For now, market conditions favor a long bias with focus on a breakout attempt toward the 1.16800 resistance zone.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
Market Analysis
EURUSD is transitioning out of a prolonged bearish phase that previously unfolded inside a well-defined downward channel. After forming a major swing low in early November, the pair initiated a recovery and gradually shifted into a corrective bullish structure. Price is now trading inside a developing triangle formation, defined by the ascending Triangle Support Line and the descending Triangle Resistance Line. During the decline, the market repeatedly respected the key Support Zone around 1.16200, which acted as a strong demand area and triggered bullish reactions on multiple occasions. Most recently, EURUSD completed a clear Head and Shoulders reversal pattern near the lower boundary, signaling exhaustion of sellers and the start of buyer control. Following this structure, price broke above the support zone and is now consolidating above it, confirming the zone as a valid demand base.
Currently, the pair is approaching the major Resistance Zone at 1.16800, which also aligns with the descending triangle resistance. This area remains the key upside barrier for buyers and represents a critical decision point for the market.
My Scenario & Strategy
My scenario is bullish, as long as price remains above the 1.16200 Support Zone and continues respecting the ascending Triangle Support Line. I expect EURUSD to maintain upward pressure and attempt a breakout toward the 1.16800 resistance, which is the next major supply area. A clean breakout above this zone would confirm bullish continuation and open the way for further upside toward higher targets.
However, if price reaches the resistance and shows strong rejection, a corrective pullback back toward the 1.16200 demand may occur. Still, the overall bullish structure remains valid as long as the support zone holds. For now, market conditions favor a long bias with focus on a breakout attempt toward the 1.16800 resistance zone.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
Trade active
At the moment, the price is testing the triangle support line, we are waiting to see how events in the market will unfold further.Trade closed manually
The price did start to form a recovery movement towards the resistance line, but our target was not reached.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🚀If you want became part of my trading team & start making big profits welcome to my paid VIP signals group, write me✏️ t.me/ratner_1
❤️Welcome to my telegram channel👉🏼 t.me/ratner_trading
❤️Welcome to my telegram channel👉🏼 t.me/ratner_trading
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.