Unveiling the Next Big Move in EUR/USD: A Fresh Continuation Set
Updated
The EUR/USD pair has recently experienced a significant downward move, driven by market reactions to recent news events. This drop has brought the price to test the August opening price level, suggesting further bearish momentum. The market's trajectory continues to print lower lows, and all signs point toward a potential retest of the psychologically significant 1.0800 level, which often serves as a magnet for price in such trends.
Recently, the price rebounded from just above this key level, bouncing off the 1.08100 mark. This development now opens up an intriguing opportunity for a pullback trade. As the price climbs back toward a key resistance zone—aligned with a descending trendline—there’s potential for a rejection at this area, signaling a continuation of the current downtrend. This resistance zone, combined with the trendline acting as a dynamic barrier, could be where sellers regain control.
However, it’s important to keep in mind that today is Friday, a day notorious for low liquidity and market indecision as traders close positions ahead of the weekend. This could result in some choppy, sideways trading action rather than a strong directional move. Given this, patience is required to see how price reacts to the resistance zone. Should the price reject this area convincingly, it would confirm bearish momentum and increase the likelihood of a retest of the support at 1.08100.
This level not only marks the recent bounce point but also serves as a key support structure that could define the next leg of the market's movement. While this trade setup favors a continuation of the bearish trend, the potential for sideways movement today means that the timing of any significant move may stretch into the next trading week.
In summary, all eyes are on the resistance zone and descending trendline. If the price shows signs of rejection here, it could offer an excellent opportunity to enter a short position, targeting the 1.08100 support level as the first objective.
Recently, the price rebounded from just above this key level, bouncing off the 1.08100 mark. This development now opens up an intriguing opportunity for a pullback trade. As the price climbs back toward a key resistance zone—aligned with a descending trendline—there’s potential for a rejection at this area, signaling a continuation of the current downtrend. This resistance zone, combined with the trendline acting as a dynamic barrier, could be where sellers regain control.
However, it’s important to keep in mind that today is Friday, a day notorious for low liquidity and market indecision as traders close positions ahead of the weekend. This could result in some choppy, sideways trading action rather than a strong directional move. Given this, patience is required to see how price reacts to the resistance zone. Should the price reject this area convincingly, it would confirm bearish momentum and increase the likelihood of a retest of the support at 1.08100.
This level not only marks the recent bounce point but also serves as a key support structure that could define the next leg of the market's movement. While this trade setup favors a continuation of the bearish trend, the potential for sideways movement today means that the timing of any significant move may stretch into the next trading week.
In summary, all eyes are on the resistance zone and descending trendline. If the price shows signs of rejection here, it could offer an excellent opportunity to enter a short position, targeting the 1.08100 support level as the first objective.
Trade closed: target reached
Target reached, stay safe.
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