Traders, get ready for an enticing opportunity as we unveil a compelling bearish setup on the EURUSD pair, observed on the 1-hour timeframe. It's time to crack the code and capitalize on a potential sell signal, driven by the breakdown of an asymmetrical triangle pattern.
Our journey begins with the recognition of this pattern, characterized by lower highs and a relatively horizontal support line. The recent breakdown of this triangle pattern signals a shift in market dynamics, with the bears taking control. For optimal entry, we suggest waiting for a retest of the previous support level, now turning into resistance around the 1.07000 mark. This retest presents a favorable opportunity to join the downtrend at an optimal price level.
To manage risk effectively, it is recommended to set a stop loss above 1.07100, safeguarding against unexpected market fluctuations. With risk under control, we can focus on our profit targets. The first target lies at the minor resistance level of 1.06545, providing an opportunity to secure gains along the way. The ultimate target is set at 1.06200, aligning with the bearish sentiment and offering further potential for profit realization.
Trading with the trend can significantly enhance the probability of success, and in this case, the trend continuation pattern of the breakdown presents a high probability opportunity. Additionally, the bullish momentum observed in the dollar index further strengthens the case for a bearish bias on the EURUSD pair.
Get ready to ride the momentum and embrace this bearish setup. Stay attuned to market developments and adapt your strategy accordingly as the trade progresses.
Don't forget to press the like button if you think this insight was helpful !📉🐻💪
Our journey begins with the recognition of this pattern, characterized by lower highs and a relatively horizontal support line. The recent breakdown of this triangle pattern signals a shift in market dynamics, with the bears taking control. For optimal entry, we suggest waiting for a retest of the previous support level, now turning into resistance around the 1.07000 mark. This retest presents a favorable opportunity to join the downtrend at an optimal price level.
To manage risk effectively, it is recommended to set a stop loss above 1.07100, safeguarding against unexpected market fluctuations. With risk under control, we can focus on our profit targets. The first target lies at the minor resistance level of 1.06545, providing an opportunity to secure gains along the way. The ultimate target is set at 1.06200, aligning with the bearish sentiment and offering further potential for profit realization.
Trading with the trend can significantly enhance the probability of success, and in this case, the trend continuation pattern of the breakdown presents a high probability opportunity. Additionally, the bullish momentum observed in the dollar index further strengthens the case for a bearish bias on the EURUSD pair.
Get ready to ride the momentum and embrace this bearish setup. Stay attuned to market developments and adapt your strategy accordingly as the trade progresses.
Don't forget to press the like button if you think this insight was helpful !📉🐻💪
Trade active:
its a nice 1:5 risk to reward ratio
Trade closed: stop reached