EURUSD approaches mother of all Resistances from the 2008 crisis
The EURUSD pair broke through all major medium-term Resistance levels, with the latest being the 1W MA200, but is now facing perhaps the most important Resistance of all. That is the Lower Highs trend-line, that started during the height of the 2008 U.S. Housing Crisis on July 2008.
As you can see on this 1M time-frame, this Resistance is technically the top of the 19-year Falling Wedge pattern, which encompasses different cycles of foreign exchange price action, such as the 1M MA200 (orange trend-line) turning from a multi-year Support to multi-year Resistance etc.
The presence of the 1M MA100 (green trend-line) adds more selling pressure to the current Resistance cluster, which had the last major long-term rejection on July 2023 and before that on February 2018 (along with the 1M MA200 that time).
Ideally, the sell signal will get strengthened if the 1M RSI gets rejected on its 15-year Resistance Zone. As a result, a rejection within the multi-year Falling Wedge, will most likely see EURUSD test the Symmetrical Support Zone (blue), which only broke once during the recent 2022 Inflation Crisis.
If however the price closes a 1M candle above the Lower Highs of the Wedge, we will turn bullish long-term towards the 1M MA200, aiming at around 1.2000.
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As you can see on this 1M time-frame, this Resistance is technically the top of the 19-year Falling Wedge pattern, which encompasses different cycles of foreign exchange price action, such as the 1M MA200 (orange trend-line) turning from a multi-year Support to multi-year Resistance etc.
The presence of the 1M MA100 (green trend-line) adds more selling pressure to the current Resistance cluster, which had the last major long-term rejection on July 2023 and before that on February 2018 (along with the 1M MA200 that time).
Ideally, the sell signal will get strengthened if the 1M RSI gets rejected on its 15-year Resistance Zone. As a result, a rejection within the multi-year Falling Wedge, will most likely see EURUSD test the Symmetrical Support Zone (blue), which only broke once during the recent 2022 Inflation Crisis.
If however the price closes a 1M candle above the Lower Highs of the Wedge, we will turn bullish long-term towards the 1M MA200, aiming at around 1.2000.
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** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
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