current 1-hour (1H) chart analysis of EUR/USD, I'M proposed sell entry at 1.13800 with a target of 1.12500 is a valid strategy, contingent on specific technical confirmations.
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📉 Current Market Overview
Trend Analysis: As of May 26, 2025, the 1H chart indicates a bullish trend, with 75% of moving average signals supporting upward momentum. However, short-term moving averages are showing neutral signals, suggesting a potential slowdown in bullish momentum .
Resistance Levels: The price is approaching a significant resistance zone between 1.1380 and 1.1443, which has historically prompted bearish reversals .
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🔍 Technical Patterns and Indicators
Bearish Rectangle Formation: A bearish rectangle pattern has been identified on the 1H chart, indicating potential for a downward breakout. This pattern suggests that if the price breaks below the support level, a move towards 1.0805 could occur .
Moving Averages: The 50-period moving average is acting as a dynamic support, while the 200-period moving average supports the broader bullish structure. A break below these averages could signal a shift towards bearish momentum .
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🎯 Trade Strategy
Entry Point: Consider initiating a short position if the price fails to break above the 1.1380 resistance and shows signs of reversal.
Target: 1.12500, aligning with previous support levels and potential completion of the bearish rectangle pattern.
Stop-Loss: Place a stop-loss above the 1.1443 resistance zone to mitigate risk in case of a bullish breakout.
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⚠️ Risk Management and Considerations
Confirmation: Wait for confirmation of bearish signals, such as a break below key support levels or bearish candlestick patterns, before entering the trade.
Volatility: Be aware of economic news releases and events that may cause increased volatility, potentially impacting the trade outcome.
Trend Reassessment: Continuously monitor the trend and be prepared to adjust your strategy if bullish momentum resumes.
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In summary, your proposed trade setup is strategically sound, provided that bearish confirmations are observed near the 1.1380 resistance level. Ensure diligent monitoring of market conditions and adherence to risk management principles to optimize trade performance.
---
📉 Current Market Overview
Trend Analysis: As of May 26, 2025, the 1H chart indicates a bullish trend, with 75% of moving average signals supporting upward momentum. However, short-term moving averages are showing neutral signals, suggesting a potential slowdown in bullish momentum .
Resistance Levels: The price is approaching a significant resistance zone between 1.1380 and 1.1443, which has historically prompted bearish reversals .
---
🔍 Technical Patterns and Indicators
Bearish Rectangle Formation: A bearish rectangle pattern has been identified on the 1H chart, indicating potential for a downward breakout. This pattern suggests that if the price breaks below the support level, a move towards 1.0805 could occur .
Moving Averages: The 50-period moving average is acting as a dynamic support, while the 200-period moving average supports the broader bullish structure. A break below these averages could signal a shift towards bearish momentum .
---
🎯 Trade Strategy
Entry Point: Consider initiating a short position if the price fails to break above the 1.1380 resistance and shows signs of reversal.
Target: 1.12500, aligning with previous support levels and potential completion of the bearish rectangle pattern.
Stop-Loss: Place a stop-loss above the 1.1443 resistance zone to mitigate risk in case of a bullish breakout.
---
⚠️ Risk Management and Considerations
Confirmation: Wait for confirmation of bearish signals, such as a break below key support levels or bearish candlestick patterns, before entering the trade.
Volatility: Be aware of economic news releases and events that may cause increased volatility, potentially impacting the trade outcome.
Trend Reassessment: Continuously monitor the trend and be prepared to adjust your strategy if bullish momentum resumes.
---
In summary, your proposed trade setup is strategically sound, provided that bearish confirmations are observed near the 1.1380 resistance level. Ensure diligent monitoring of market conditions and adherence to risk management principles to optimize trade performance.
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Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
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Gold Signal's with proper TP & SL for high profit opportunities..
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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.
📲 Join telegram channel free ..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
t.me/Trade_With_Gold_King005
Forex, Gold & Crypto Signals with detailed analysis & get consistent results..
t.me/Gold_Analysis_Experiment
Gold Signal's with proper TP & SL for high profit opportunities..
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.