The EUR/USD remains confined within a descending channel, where price consistently reacts to both its upper resistance and lower support boundaries. Recently, the market showed signs of bullish momentum following a dominant downtrend, rebounding from a key support level near 1.01873. This led to a dominant uptrend, pushing the price towards 1.05226, where it faced strong resistance at the upper boundary of the channel.
This rejection suggests that sellers remain in control at higher levels, likely leading to a retracement towards 1.04385. If selling pressure continues, the price could move lower to 1.03484 and possibly 1.02502. However, a breakout above 1.05226 would indicate a shift in momentum, with the next resistance levels at 1.06026 and 1.06364.
For now, as long as the price remains within the descending channel, the overall bearish bias remains intact, with a preference for short positions unless a clear breakout occurs.
This rejection suggests that sellers remain in control at higher levels, likely leading to a retracement towards 1.04385. If selling pressure continues, the price could move lower to 1.03484 and possibly 1.02502. However, a breakout above 1.05226 would indicate a shift in momentum, with the next resistance levels at 1.06026 and 1.06364.
For now, as long as the price remains within the descending channel, the overall bearish bias remains intact, with a preference for short positions unless a clear breakout occurs.
Trade active
The price remains in a bearish trend below 1.0438, which now acts as resistance. A confirmed 4-hour candle close below this level would signal further downside toward support levels at 1.0348, 1.0250, and 1.0187. However, a short-term correction toward 1.0438 is possible before continuing the decline. The descending channel reinforces the dominant downtrend, and traders should watch for false breakouts or retests before confirming further bearish momentum.Trade closed: target reached
The price remains in a descending channel and is likely to continue its bearish trend below 1.0438. However, a short period of consolidation is expected in this zone before attempting to break 1.0348.If the price successfully breaks 1.0348, further downside targets include 1.0250 and 1.0187. On the upside, a recovery above 1.0438 could push the price back toward the resistance at 1.0522, but the overall trend remains bearish unless a breakout occurs.
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The market is waiting—you can make money, and you should.
The market is waiting—you can make money, and you should.
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.
Profit isn’t about luck, it’s about strategy. Get free signals and trade smarter: Telegram Channel [t.me/ArinaMarketAnalysis].
The market is waiting—you can make money, and you should.
The market is waiting—you can make money, and you should.
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.