My Analysis of EURUSD (1 Hour Chart)
Updated
Hello everyone,
Ascending Channel Formation:
Price is moving within a clear ascending channel, with higher highs and higher lows forming along the way. This structure suggests a temporary upside correction within the overall downtrend.
EMA Dynamics:
The 34 EMA (purple) is currently acting as dynamic resistance, rejecting multiple attempts to break higher, as indicated by the red arrows.
The 89 EMA (pink) is closely aligned, consolidating the resistance zone and signaling bearish momentum when the price is below these levels.
Key Resistance Zone:
The upper boundary of the channel, near 1.0525, is a key resistance zone. This zone is consistent with the rejection from the EMA and is expected to limit upside momentum.
Near-term Price Movement:
I expect price to retest this resistance level and potentially fake out in the short term before moving lower. A break of the ascending channel to the downside would confirm a continuation of the decline.
Target Level:
The initial downside target is around 1.0450, near the middle of the previous range.
If the decline continues, I expect the price to fall further towards the support level of 1.0352, which marks the lower boundary of my expected price.
Risk Zone:
A sustained break above 1.0550 would invalidate my bearish outlook and signal further upside.
Conclusion:
For now, I am watching how the price reacts at the upper boundary of the ascending channel and the EMA resistance zone. Any rejection or bearish candlestick pattern would confirm my short bias, focusing on the downside targets.
Ascending Channel Formation:
Price is moving within a clear ascending channel, with higher highs and higher lows forming along the way. This structure suggests a temporary upside correction within the overall downtrend.
EMA Dynamics:
The 34 EMA (purple) is currently acting as dynamic resistance, rejecting multiple attempts to break higher, as indicated by the red arrows.
The 89 EMA (pink) is closely aligned, consolidating the resistance zone and signaling bearish momentum when the price is below these levels.
Key Resistance Zone:
The upper boundary of the channel, near 1.0525, is a key resistance zone. This zone is consistent with the rejection from the EMA and is expected to limit upside momentum.
Near-term Price Movement:
I expect price to retest this resistance level and potentially fake out in the short term before moving lower. A break of the ascending channel to the downside would confirm a continuation of the decline.
Target Level:
The initial downside target is around 1.0450, near the middle of the previous range.
If the decline continues, I expect the price to fall further towards the support level of 1.0352, which marks the lower boundary of my expected price.
Risk Zone:
A sustained break above 1.0550 would invalidate my bearish outlook and signal further upside.
Conclusion:
For now, I am watching how the price reacts at the upper boundary of the ascending channel and the EMA resistance zone. Any rejection or bearish candlestick pattern would confirm my short bias, focusing on the downside targets.
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✅ Trading Ideas / Setups / Techniques.
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