EURUSD has broken down from a Rising Wedge pattern on the 1H timeframe, suggesting a bearish momentum shift after a strong rally. The current price action indicates a likely continuation lower, targeting the Fair Value Gap (FVG) zone and major support near 1.07047.
📊 Technical Breakdown
1. Rising Wedge Pattern
A clean bearish rising wedge formed during the uptrend, with price contracting upward and volatility drying.
The breakdown from this wedge came with strong bearish momentum, confirming the pattern's bearish bias.
2. Fair Value Gaps (FVGs) as Draws on Liquidity
Two unmitigated FVGs lie below current price:
First zone near 1.0780
Second deeper zone near 1.07047, aligning with the projected measured move of the wedge breakdown.
These zones act as magnetic targets for price to fill inefficiencies and collect liquidity.
3. Bearish Retest Structure
Price is currently forming a potential retest of the broken wedge structure, which could provide an ideal short entry opportunity.
Expected continuation downward upon rejection from this retest zone.
🧠 Trade Idea
Entry Zone: After confirmation of rejection near 1.0850 (retest of wedge)
Target: 1.07047 (FVG & measured move confluence)
Stop Loss: Above 1.0885 (above wedge structure)
Risk-Reward: Solid setup with FVG and structure confluence
⚠️ Key Levels to Watch
Resistance: 1.0850–1.0880 (wedge retest)
Support/Target: 1.07047 (FVG fill + structure)
Break back above 1.0900 invalidates the short setup.
📊 Technical Breakdown
1. Rising Wedge Pattern
A clean bearish rising wedge formed during the uptrend, with price contracting upward and volatility drying.
The breakdown from this wedge came with strong bearish momentum, confirming the pattern's bearish bias.
2. Fair Value Gaps (FVGs) as Draws on Liquidity
Two unmitigated FVGs lie below current price:
First zone near 1.0780
Second deeper zone near 1.07047, aligning with the projected measured move of the wedge breakdown.
These zones act as magnetic targets for price to fill inefficiencies and collect liquidity.
3. Bearish Retest Structure
Price is currently forming a potential retest of the broken wedge structure, which could provide an ideal short entry opportunity.
Expected continuation downward upon rejection from this retest zone.
🧠 Trade Idea
Entry Zone: After confirmation of rejection near 1.0850 (retest of wedge)
Target: 1.07047 (FVG & measured move confluence)
Stop Loss: Above 1.0885 (above wedge structure)
Risk-Reward: Solid setup with FVG and structure confluence
⚠️ Key Levels to Watch
Resistance: 1.0850–1.0880 (wedge retest)
Support/Target: 1.07047 (FVG fill + structure)
Break back above 1.0900 invalidates the short setup.
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Related publications
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.