EURUSD: Price Exit from Triangle and Start FallHello everyone, here is my breakdown of the current Euro setup.
Market Analysis
From a broader perspective, EURUSD has been in a prolonged consolidation phase, forming a large symmetrical triangle. The price has been coiling between the major Support zone around the 1.1580 level and the key Resistance Zone up to the 1.1755 area, indicating a long period of market balance.
Currently, the price is at a critical decision point, trading at the apex of this triangle. It is directly challenging the descending resistance line, and the contracting volatility suggests a powerful, decisive move is on the horizon for the market.
My Scenario & Strategy
My scenario is built around the idea of a potential 'bull trap' or a failed breakout. While the price may initially break the triangle's resistance line, I believe the major Resistance Zone between the 1.1735 and 1.1755 area will hold firm, as it has done in the past.
I'm looking for the price to push above the trendline and into the Resistance Zone, which would likely trap optimistic buyers. The key signal would be a swift and forceful rejection from this area, pushing the price back down below the breakout point and eventually below the triangle's ascending support line. The primary target for this move is 1.1640, an objective below the current consolidation.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
