EURUSD: Dip and Bounce from Triangle Support

Sep 21

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

Market Analysis

After reversing from a prior Downward Channel, EURUSD has been consolidating in a large Upward Triangle. This pattern is typically bullish and is defined by a flat horizontal Resistance at the 1.1780 level and an ascending support line, showing that buyers are becoming progressively more aggressive on each dip.

An interesting part of this pattern's history is the 'fake breakout' we saw previously, where the price spiked to a local ATH at 1.1920 before falling back inside. Currently, the price is again in a corrective pullback, heading towards the ascending Triangle Support Line for another test.

My Scenario & Strategy

My scenario is based on the expectation that this Upward Triangle will eventually resolve to the upside. I'm looking for the price to complete its downward movement and find strong support on the ascending Triangle Support Line. A confirmed bounce from this line would be the key signal that buyers are stepping in to defend the trend.

Therefore, the strategy is to watch for this bounce. A successful rebound that finally leads to a decisive breakout above the Resistance Zone would validate the long scenario. The primary target for the subsequent expansion is 1.1860, a logical objective for the move that would follow.

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

Sep 22

Trade active

Update:
- price declined to support line of triangle;
- then price turned around and started to grow;
- recently Euro reached resistance level and entered to resistance zone

In my mind, Euro will break resistance level, make retest and continue to move up.

Sep 23

Trade closed: target reached

Price broke the resistance level, and now it can make a retest, after which continue to move up.