EUR/USD Bearish Breakdown from Symmetrical Triangle – Detailed Trade Analysis
🔍 Overview
The EUR/USD pair has been exhibiting a clear downtrend in the broader context, with the most recent price action forming a symmetrical triangle, typically a neutral pattern that resolves in the direction of the prior trend. In this case, the pair has broken bearishly out of the consolidation range, signaling a continuation of the preceding selling momentum.
This trading idea focuses on identifying, analyzing, and capitalizing on this technical breakout setup, with a clear entry, stop loss, and target based on market structure and price action theory.
📊 Chart Structure and Market Psychology
1️⃣ Prior Trend – Bearish Momentum
The initial part of the chart shows strong downward price action, characterized by large bearish candles and lower highs/lows. This movement represents aggressive selling, possibly driven by macroeconomic or USD strength themes.
This downward trend sets the context for a continuation pattern.
2️⃣ Formation of the Symmetrical Triangle
As the bearish pressure paused, price began to coil within a symmetrical triangle, forming:
Higher lows, indicating buyers trying to support price
Lower highs, showing sellers stepping in earlier on each rally
This compressing price action reflects indecision and tightening liquidity, where neither side fully controls the market. However, symmetrical triangles typically act as continuation patterns when emerging after a strong trend — in this case, bearish.
3️⃣ Breakout Confirmation
The breakout occurred to the downside, with a decisive candle closing below the triangle’s lower boundary. This validates the bearish pattern and signals renewed strength from sellers.
Key characteristics confirming the breakout:
Clean breach of the trendline
No significant rejection or long wick at the breakout point
Bearish follow-through with momentum (not just a false breakout)
🎯 Trade Setup Details
Component Value
Trade Type Short (Sell)
Entry Price Around 1.1380 after breakout confirmation
Stop Loss (SL) Above the triangle’s upper resistance line at 1.14233
Take Profit (TP1) 1.13472 – measured based on nearest support
Final Target (TP2) 1.13300 – broader support zone and completion of pattern projection
Risk/Reward Favorable (approx. 1:2 or higher depending on entry timing)
📐 Technical Reasoning
📏 Measured Move Projection
The height of the triangle (peak to base) is approximately 40-50 pips. Once price breaks out, this height is projected downward from the breakout point to define the target zone.
Triangle height: ~45 pips
Breakout from ~1.1380 leads to a projected target of ~1.1330–1.1340
This lines up well with previously tested support levels and price action clusters on the left side of the chart.
🧠 Price Action Insights
Resistance Zone: Marked at 1.14100–1.14233 – sellers have stepped in multiple times here
Support Zone: 1.13300 – key level of interest where buyers may attempt to defend again
Bearish Structure: Series of lower highs and breakout from higher lows signal seller strength
Rejection Candles: Leading up to the breakout, several rejections from the triangle’s resistance line showed fading buyer momentum
⚠️ Risk Management Tips
Use confirmation: Don’t jump into breakouts blindly. Confirm with strong body candles and volume.
Retest entry: If missed initial move, wait for a pullback (retest) of the breakout zone for a safer entry.
Size accordingly: Position sizing should reflect volatility and distance to SL — generally risk no more than 1–2% of capital.
Economic News Watch: Monitor for high-impact events (e.g. Fed or ECB releases) that could cause sudden reversals.
🧭 Trade Management Strategy
Initial TP at 1.13472 for a partial exit or to lock in profits
Final TP at 1.13300 to maximize the move based on technical projection
Trailing Stop Option: Once price reaches TP1, consider moving SL to break-even to manage risk-free exposure
Monitor intraday momentum and candle behavior for signs of exhaustion or reversal
✅ Summary
This setup provides a technically sound bearish continuation trade in EUR/USD, capitalizing on a well-defined symmetrical triangle breakdown. With a clear structure, logical risk-reward, and alignment with the broader trend, this trade idea offers a high-probability opportunity for traders who follow price action and pattern trading.
🔍 Overview
The EUR/USD pair has been exhibiting a clear downtrend in the broader context, with the most recent price action forming a symmetrical triangle, typically a neutral pattern that resolves in the direction of the prior trend. In this case, the pair has broken bearishly out of the consolidation range, signaling a continuation of the preceding selling momentum.
This trading idea focuses on identifying, analyzing, and capitalizing on this technical breakout setup, with a clear entry, stop loss, and target based on market structure and price action theory.
📊 Chart Structure and Market Psychology
1️⃣ Prior Trend – Bearish Momentum
The initial part of the chart shows strong downward price action, characterized by large bearish candles and lower highs/lows. This movement represents aggressive selling, possibly driven by macroeconomic or USD strength themes.
This downward trend sets the context for a continuation pattern.
2️⃣ Formation of the Symmetrical Triangle
As the bearish pressure paused, price began to coil within a symmetrical triangle, forming:
Higher lows, indicating buyers trying to support price
Lower highs, showing sellers stepping in earlier on each rally
This compressing price action reflects indecision and tightening liquidity, where neither side fully controls the market. However, symmetrical triangles typically act as continuation patterns when emerging after a strong trend — in this case, bearish.
3️⃣ Breakout Confirmation
The breakout occurred to the downside, with a decisive candle closing below the triangle’s lower boundary. This validates the bearish pattern and signals renewed strength from sellers.
Key characteristics confirming the breakout:
Clean breach of the trendline
No significant rejection or long wick at the breakout point
Bearish follow-through with momentum (not just a false breakout)
🎯 Trade Setup Details
Component Value
Trade Type Short (Sell)
Entry Price Around 1.1380 after breakout confirmation
Stop Loss (SL) Above the triangle’s upper resistance line at 1.14233
Take Profit (TP1) 1.13472 – measured based on nearest support
Final Target (TP2) 1.13300 – broader support zone and completion of pattern projection
Risk/Reward Favorable (approx. 1:2 or higher depending on entry timing)
📐 Technical Reasoning
📏 Measured Move Projection
The height of the triangle (peak to base) is approximately 40-50 pips. Once price breaks out, this height is projected downward from the breakout point to define the target zone.
Triangle height: ~45 pips
Breakout from ~1.1380 leads to a projected target of ~1.1330–1.1340
This lines up well with previously tested support levels and price action clusters on the left side of the chart.
🧠 Price Action Insights
Resistance Zone: Marked at 1.14100–1.14233 – sellers have stepped in multiple times here
Support Zone: 1.13300 – key level of interest where buyers may attempt to defend again
Bearish Structure: Series of lower highs and breakout from higher lows signal seller strength
Rejection Candles: Leading up to the breakout, several rejections from the triangle’s resistance line showed fading buyer momentum
⚠️ Risk Management Tips
Use confirmation: Don’t jump into breakouts blindly. Confirm with strong body candles and volume.
Retest entry: If missed initial move, wait for a pullback (retest) of the breakout zone for a safer entry.
Size accordingly: Position sizing should reflect volatility and distance to SL — generally risk no more than 1–2% of capital.
Economic News Watch: Monitor for high-impact events (e.g. Fed or ECB releases) that could cause sudden reversals.
🧭 Trade Management Strategy
Initial TP at 1.13472 for a partial exit or to lock in profits
Final TP at 1.13300 to maximize the move based on technical projection
Trailing Stop Option: Once price reaches TP1, consider moving SL to break-even to manage risk-free exposure
Monitor intraday momentum and candle behavior for signs of exhaustion or reversal
✅ Summary
This setup provides a technically sound bearish continuation trade in EUR/USD, capitalizing on a well-defined symmetrical triangle breakdown. With a clear structure, logical risk-reward, and alignment with the broader trend, this trade idea offers a high-probability opportunity for traders who follow price action and pattern trading.
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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.
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.