Technical Outlook — May 12, 2025
Current Market Condition:
EUR/USD has broken below the ascending channel, indicating the potential start of a larger corrective wave structure. Price is currently in the process of completing wave A and is anticipated to retrace upward to form wave B before a possible continuation to the downside (wave C).
Key Technical Highlights:
Price rejected and broke rising channel and is now trading near EMA 50 (blue)
Fibonacci Cloud is acting as a strong support for a retracement
Stochastic oscillator is not fully inn oversold territory, suggesting a temporary relief bounce is possible before a bearish continuation
Previous support turned resistance at 1.13000 aligns with the likely wave B retracement zone
Possible Scenarios:
Long Setup:
As far as EMA 50 act as a support and there's a reversal candle, Wave B will start retracement to above resistance level and will provide a short Bullish trade to 1.12500 - 1.13000.
Short Setup (after wave B completes):
Look for a short entry around 1.12500-1.13000 zone after a succeful confirmation of reversal and set SL above this resistance. Aim for below support levels for your TPs.
Invalidation:
A sustained close above 1.1400 would invalidate the current wave count and bearish bias.
Important Note:
Key US CPI data is scheduled this week. Be cautious of increased volatility and fakeouts during news events.
If you found this analysis valuable, kindly consider boosting and following for more updates.
Disclaimer: This content is intended for educational purposes only and does not constitute financial advice.
Current Market Condition:
EUR/USD has broken below the ascending channel, indicating the potential start of a larger corrective wave structure. Price is currently in the process of completing wave A and is anticipated to retrace upward to form wave B before a possible continuation to the downside (wave C).
Key Technical Highlights:
Price rejected and broke rising channel and is now trading near EMA 50 (blue)
Fibonacci Cloud is acting as a strong support for a retracement
Stochastic oscillator is not fully inn oversold territory, suggesting a temporary relief bounce is possible before a bearish continuation
Previous support turned resistance at 1.13000 aligns with the likely wave B retracement zone
Possible Scenarios:
Long Setup:
As far as EMA 50 act as a support and there's a reversal candle, Wave B will start retracement to above resistance level and will provide a short Bullish trade to 1.12500 - 1.13000.
Short Setup (after wave B completes):
Look for a short entry around 1.12500-1.13000 zone after a succeful confirmation of reversal and set SL above this resistance. Aim for below support levels for your TPs.
Invalidation:
A sustained close above 1.1400 would invalidate the current wave count and bearish bias.
Important Note:
Key US CPI data is scheduled this week. Be cautious of increased volatility and fakeouts during news events.
If you found this analysis valuable, kindly consider boosting and following for more updates.
Disclaimer: This content is intended for educational purposes only and does not constitute financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.