EURUSD Long: Reversal from Wedge Support Expected

Sep 25

Hello, traders! The prior market structure for EURUSD was a bullish ascending channel, which concluded with a pivot point high at the SUPPLY 2 level of 1.1835. A subsequent breakdown from that channel shifted the market's momentum, initiating a corrective phase that has since taken the form of a downward wedge, guiding the price lower.

Currently, the price auction has completed another leg down within this wedge and is now at a critical inflection point. The price is directly testing the descending support line of the formation, a key area where a bullish reversal could originate. This represents a major test of the prevailing bearish momentum.

My scenario for the development of events is a bullish reversal from the support of this downward wedge. I expect the price to find strong support at the current demand line and initiate a new rally. In my opinion, this move will be strong enough to break through the immediate SUPPLY at 1.1690 and continue towards the upper resistance line of the wedge. The take-profit is therefore set at 1.1755, targeting that upper boundary. Manage your risk!

Sep 26

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The price auction executed a fake breakout of the wedge, but has since reversed and is now challenging the key resistance level. The new primary scenario is now bullish, anticipating a successful breakout above this resistance to continue towards the take-profit objective.