EURUSD Bearish Wedge, Part 2
Updated
A follow up on yesterday's analysis. On the left i have changed the support line a little bit (i have not changed it on the right though). As we can see, it seems to be following that blue line scenario, but the wedge is still in play AND so far it is still testing the breakout, which is taking some time already. So in other words, the wedge can still play out, but then the red zone needs to break. If the red zone breaks, it could be the start of a bearish movement because that could be the first step of a false breakout.
So i think if 1.0950/40 breaks, i think we have a good chance for the wedge to still play out (something like the red line). I am not betting on a rally here, think it is already taking to long to break up. So both bull and bear is still possible here, but we already had a new high which got rejected and a second retest of the breakout, which decreases the chances for the bulls.
Previous analysis:
So i think if 1.0950/40 breaks, i think we have a good chance for the wedge to still play out (something like the red line). I am not betting on a rally here, think it is already taking to long to break up. So both bull and bear is still possible here, but we already had a new high which got rejected and a second retest of the breakout, which decreases the chances for the bulls.
Previous analysis:
Note
It got extended a little bit, but never broke the wedge and clear now it was a trap for the bulls since the start. The sharp decline confirms the wedge was real from the start, but of course they never make it easy. Also good to see how that orange zone still caused a small bounce. Normally the Wedge target is the yellow circle, but still can't say if the wedge is a bear flag (meaning price could drop much more or that we turn up again from the yellow zone. With wedges, always danger that targets fall short, meaning price could turn up before the target gets reached. So, be smart and take partial profits if you took on a short here.
Note
Target zone reached :), could drop a bit more within the zone, but would say, up to you. As yesterday, when i said to take partial profit, was perfectly at the low and price pumped shortly after. It could happen again, just be smart, always take partial profit, at least have a plan
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