EURUSD, Breakout And Rising But The Perspective Can Reverse!

Hello Traders Investors And Community, welcome to this update-analysis about the EURUSD where we are looking at the weekly timeframe perspective, the overall breakout and rising dynamic, the importance of further price-action, where the price can lead and what to take note of in order to take appropriate action. EURUSD has formed a huge bullish rising to the upside since it broke above the preliminary broadening wedge and confirmed it bullishness not only on the smaller timeframes but also on the higher timeframes as it is clearly seen on the weekly timeframe. Now I found some interesting and worthwhile signals which can lead to a reversal and possibility on the short-side as the market approaches important levels these will determine the outcomes.

As you can watch when looking at my chart is that EURUSD just made this exponential growth since the broadening wedge confirmed appropriate, now it is moving on and firstly shows no reversal signs but when looking more inside there are important levels of resistance above between the 1.185 and 1.2 level established not only from older price-action but also the 600-EMA you can watch in my chart marked in black, these levels building up a huge resistance-cluster you can watch marked in red in the chart, furthermore the market is extremely overbought which is just supporting this cluster and the possibility to confirm it bearish and therefore show bearish pressure to the downside, which will be realized when EURUSD does not manage to move above the huge resistance-cluster.

When the more possible scenario is playing out accordingly EURUSD has the potential to back-up in the zone you can watch marked in my chart which will also confirm the broadening-wedge-formation a second time. The possible established bearishness will not mean that EURUSD will go on forever bearish but it does mean that there is waiting for a pull-back when not a bigger correction in front where EURUSD has to show if it has the strength to back-up or falls more. The immediate bullish scenario is possible currently but it is definitely not high therefore the bearish scenario and possibility on the short-side should be preferred here which can be traded either conservative with a break of the grey trendline or aggressive with an immediate entry in the bearish-cluster, traders should decide according to own risk-preference.

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

Comment:

ANALYSIS UPDATE: EURUSD pulled back off the resistance cluster as well as the 600 EMA to emerge with a massive bearish reversal increasing bearish momentum.

Since EURUSD accelerated the bearish momentum it moved into the bearish target zones.