EUR/USD Broke the Ascending Channel - Now what?
Good morning, traders! Today we want to share our analysis in EUR/USD since we consider it an interesting situation that may help you decide or complement your vision in this pair.
🔸In the Daily Chart (published), we see that the price has been in an uptrend for more than a year (the trend has not been broken yet), and we can also draw an Ascending Channel. Although the trend remains active until a previous low is broken, the channel penetrated the downside.
🔸This breakout is a bearish sign, at least in the short term.
🔸Possibly during the next days or weeks, we will see a movement towards the support zones.
🔸These zones are key since they will determine if the price continues in an uptrend or not.
Well, with that said, we are going to decrease the timeframe and detail what we are looking for to look for a bearish opportunity:
8H CHART:
🔸In this chart, we can see more clearly the price structure and levels.
🔸We will look for a correction or consolidation in the current price zone and a corrective pattern to form. If this happens, we will look for a bearish breakout from it and the next momentum.
🔸The support zones are not very far away, so it should not be a move that lasts too long.
🔸In the Daily Chart (published), we see that the price has been in an uptrend for more than a year (the trend has not been broken yet), and we can also draw an Ascending Channel. Although the trend remains active until a previous low is broken, the channel penetrated the downside.
🔸This breakout is a bearish sign, at least in the short term.
🔸Possibly during the next days or weeks, we will see a movement towards the support zones.
🔸These zones are key since they will determine if the price continues in an uptrend or not.
Well, with that said, we are going to decrease the timeframe and detail what we are looking for to look for a bearish opportunity:
8H CHART:
🔸In this chart, we can see more clearly the price structure and levels.
🔸We will look for a correction or consolidation in the current price zone and a corrective pattern to form. If this happens, we will look for a bearish breakout from it and the next momentum.
🔸The support zones are not very far away, so it should not be a move that lasts too long.
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