Eurousd techinical analysis.This EUR/USD chart (1-hour timeframe) presents a technical analysis setup involving key levels, trendlines, and a forecasted bearish move. Here's a breakdown:
Key Observations:
1. Descending Triangle Formation:
The chart shows a descending triangle pattern formed by a downward-sloping resistance trendline (blue) and a horizontal support zone around 1.1670 (purple box).
This is typically a bearish continuation pattern.
2. Resistance Levels:
Immediate resistance is near 1.1700, followed by a stronger resistance at around 1.1745–1.1755.
These are previous support zones turned resistance after the breakdown.
3. Support Zone:
Strong support around 1.1670 has been tested multiple times, indicated by the purple rectangle at the bottom.
4. Projected Move:
The blue squiggly arrows suggest a potential pullback or consolidation, followed by a rejection at the descending trendline, leading to a downward breakout below the support zone.
5. Market Sentiment:
The momentum is currently bearish, with recent lower highs and lower lows.
The price action is respecting the trendline resistance, which strengthens the case for a downward breakout.
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Possible Scenarios:
Bearish (Likely) Scenario:
Break below 1.1670 → Target zones could be 1.1650 or lower, depending on volume and market reaction.
Could trigger stop-losses below the consolidation zone and fuel further selling.
Bullish (Invalidation) Scenario:
Break above descending trendline and 1.1700 → Could challenge 1.1745–1.1755 resistance.
Would invalidate the bearish triangle and suggest potential reversal.
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Conclusion:
This chart suggests a bearish bias, with traders potentially looking for a short entry on a rejection from the descending trendline or a confirmed break of the 1.1670 support zone. Watch for volume confirmation and price reaction around these levels.
