EUR/USD is positioned at the top of two long-term channelsAs you can see, EUR/USD OANDA:EURUSD is currently testing the upper boundary of two major channels on both the weekly and daily timeframes.
1) Daily Timeframe Analysis
On the daily chart, the dollar completed a five-wave impulsive move into the channel’s upper resistance.
After reaching this level, price has started a correction.
Wave A has already finished with a clear five-wave structure.
Price is now forming wave B.
Based on the current structure, wave B is likely to extend:
At minimum, into the Gap Zone, and
At maximum, into the Resistance Zone
(both areas are clearly marked on the daily chart).
From either of these areas, I expect the beginning of wave C, which will likely push the pair down toward the Support Zone.
2) Weekly Timeframe Confirmation
In the weekly chart (Chart B), EUR/USD has reached:
The top of its major ascending channel, and
The 100% extension of the previous leg.
This confluence significantly strengthens the bearish scenario.
3) Additional Charts Coming
I will also upload the hourly EUR/USD chart on my TradingView page to provide a clearer and more detailed outlook.
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