USDJPY Analysis โ Yield Support Signals Potential UpsideUSDJPY is currently sitting at a key support zone around 142.80โ143.00, showing signs of a potential bullish reversal. This support area has previously acted as a strong launchpad for price rallies.
๐ข Technical Setup:
Price action has formed a clean higher low structure, bouncing off horizontal support.
The US10Y Treasury Yield (pink line) has rebounded sharply and is diverging to the upside โ a leading indicator for USDJPY strength.
The Fib retracement from the last swing move aligns well with the 0% zone, suggesting the dip might be complete.
A bullish reaction from here targets the 148.50 zone, with intermediate resistance around 145.00โ146.00.
๐ Risk Levels:
Invalidated below 141.40 (structure break).
Stops could be placed below 142.00, targeting a 2:1 or better risk-reward ratio.
๐ Macro-Fundamental Insight:
U.S. Yields are firming despite mixed Fed signals โ this gives strength to USD, especially against low-yielders like the JPY.
BOJ remains dovish with no urgency to normalize rates, keeping the yen weak.
With risk appetite improving and bond yields lifting, carry trade dynamics favor USDJPY upside.
โ
Conclusion:
As long as US10Y yields remain firm and USD holds above 142.00, USDJPY has a strong probability of rallying toward 148.50. Look for confirmation with higher highs on the 4H chart and continued divergence between yield and price.
Forex market
USDJPY Returns to Key Support โ Another Bounce Ahead?At the end of April and beginning of May, I pointed out the importance of the 142 support zone and argued that USDJPY could reverse to the upside, targeting the 146 resistance.
The pair did exactly that โ not only hitting the 146 target, but also spiking as high as 148, reaching the next major resistance.
๐ Now We're Back towards 142
Since mid-May, USDJPY has pulled back again and is now retesting the 142 area โ the same zone that previously triggered a strong bounce.
๐ Outlook and Trading Plan
I still consider the 142 level a solid support, and this recent drop could offer a new buying opportunity.
Any dips under 142 that quickly reverse can be used to build long positions, with a target once more around 146.
That offers a clear trade setup with a good risk-to-reward ratio.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
USDCAD I Daily CLS nested in W/M CLS Hey, Market Warriors, here is another outlook on this instrument
If youโve been following me, you already know every setup you see is built around a CLS range, a Key Level, Liquidity and a specific execution model.
If you haven't followed me yet, start now.
My trading system is completely mechanical โ designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings. Just clarity, structure, and execution.
๐งฉ What is CLS?
CLS is real smart money โ the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
โ
Understanding the behaviour of CLS allows you to position yourself with the giants during the market manipulations โ leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
๐ก๏ธ Models 1 and 2:
From my posts, you can learn two core execution models.
They are the backbone of how I trade and how my students are trained.
๐ Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
๐ Model 2
occurs in the specific market sequence when CLS smart money needs to re-accumulate more positions, and we are looking to find a key level around 61.8 fib retracement and target the opposing side of the range.
๐ Hit like if you find this analysis helpful, and don't hesitate to comment with your opinions, charts or any questions.โจ
โ๏ธ Listen Carefully:
Analysis is not trading. Right now, this platform is full of gurus" trying to sell you dreams based on analysis with arrows while they don't even have the skill to trade themselves.
If youโre ever thinking about buying a Trading Course or Signals from anyone. Always demand a verified track record. It takes less than five minutes to connect 3rd third-party verification tool and link to the widget to his signature.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
โ David Perk aka Dave FX Hunter โ๏ธ
NZDUSD - growth ended with a false breakout NZDUSD makes a false breakout of resistance after strong growth in the Asian session. The dollar is correcting a bit before the news at this time, which may give a chance for the currency pair to correct
Scenario: Strong growth of 2.3% is tempered by a false breakout. The price is not ready to continue rising. Consolidation of the price below 0.60200 may intensify the sell-off and trigger a correction to the support at 0.5969 (0.5)
EURO - Price can rise a little and then start to declineHi guys, this is my overview for EURUSD, feel free to check it and write your feedback in comments๐
Some time ago, price entered a falling channel, where it broke through $1.1310 level at once, but soon broke it again.
Price traded near this level for some time, after which it reached resistance line and continued to decline.
Then price broke $1.1310 level and dropped to $1.1065 level, after which it turned around and started to grow within the channel.
In the rising channel, Euro broke $1.1140 level and continued to grow, but later made a correction to this level.
After this, price continued to grow and later broke $1.1310 level, then rose to the resistance line of the channel.
I expect that Euro will rise to resistance line and then start to decline to the $1.1310 support level.
If this post is useful to you, you can support me with like/boost and advice in commentsโค๏ธ
Disclaimer: As part of ThinkMarketsโ Influencer Program, I am sponsored to share and publish their charts in my analysis.
EUR/USD - Is the uptrend about to end?The EUR/USD currency pair has demonstrated a consistent uptrend on the 4-hour chart for approximately two weeks. This sustained bullish momentum has captured the attention of traders and analysts alike, who are now questioning whether the pair can maintain its upward trajectory or if a retracement is imminent as it approaches significant resistance levels.
Rising wedge
A closer examination of the price action reveals that EUR/USD has been advancing within a rising wedge formation. This technical pattern is generally considered bearish, as it often precedes a reversal or a breakdown rather than a continued rally. Rising wedges are characterized by converging trendlines, with price making higher highs and higher lows at a diminishing rate, which typically signals waning bullish momentum and a potential for sellers to regain control.
Strong resistance
Recently, the pair encountered a notable resistance zone around the 1.141 level. Upon reaching this area, EUR/USD faced a rejection, resulting in a pullback from its recent highs. While there is a possibility that the pair could make another attempt to test this resistance, the initial rejection suggests that the upward move may be losing steam. As a result, the likelihood of a retracement has increased, especially given the bearish implications of the rising wedge pattern.
Support/target zone
If the pair does indeed correct lower, a logical target for a cooldown would be the green support zone near 1.127. This level has previously acted as a strong support area, and it could serve as a foundation for buyers to step in once more, potentially setting the stage for another move higher. Until the resistance at 1.141 is decisively broken, caution is warranted, and a period of consolidation or a pullback towards support appears increasingly probable.
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
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eurusd 20 short-term market update short it exit 1160๐ EURUSD Market Update m20 short-term trade
๐ Technical Outlook
๐ธShort-term: BEARS 1160
๐ธ5 waves impulse completed
๐ธ1090/1240/1140/1350/1270/1410
๐ธa/b/c/ correction 1160
๐ธshort sell and exit at 1160
๐ธPrice Target Bears: 1160
Key recent developments in EURUSD
๐ The U.S. dollar weakened as investors grew concerned over President Trump's proposed tax and spending bill, which could significantly increase the national debt
๐ The euro reached a one-month high after President Trump delayed the implementation of 50% tariffs on European Union imports, providing a temporary boost to investor confidence
๐ฃ๏ธ European Central Bank President Christine Lagarde suggested that the euro could become a global alternative to the U.S. dollar, contingent on strengthening the EU's financial and security infrastructure
๐ Technical analysis indicates that the EUR/USD pair may edge higher within a range of 1.1360 to 1.1420, though upward momentum is slowing
๐ Soft inflation data from France has increased selling pressure on the euro, as markets anticipate a stronger divergence between the Federal Reserve and the European Central Bank
๐ The EUR/USD pair is under bearish pressure, trading near 1.1350, as the U.S. dollar finds demand ahead of upcoming economic data and ongoing Senate tax debates
USDCHF: DXY Likely to remain bearish in long term! The USDCHF pair is likely to remain bearish in the coming days as DXY doesnโt show any bullish momentum. However, we expect DXY to be bullish in the short term, which will help the price reach our designated selling zone. Once the price reaches this zone and shows a reversal sign in a smaller timeframe, you can consider entering or taking any decision.
If youโd like to contribute, here are a few ways you can help us:
- Like our ideas
- Comment on our ideas
- Share our ideas
Team Setupsfx_๐โค๏ธ
EURUSDHello Traders! ๐
What are your thoughts on EURUSD?
EURUSD has pulled back to the broken trendline and is now trading below a key resistance zone.
As long as the price remains below this resistance, we expect a short-term decline toward the specified support level.
The rejection from this zone suggests a possible continuation of the down move.
However, if price breaks and holds above the resistance zone, the bearish outlook will be invalidated.
Donโt forget to like and share your thoughts in the comments! โค๏ธ
NZD/USD4H Chart Analysis Bullish Reversal Setup from Demand Zone๐ Price: 0.59552
๐ EMA 70: 0.59410 (๐ค Brown Line)
Chart Zones & Key Levels
๐ท Resistance Zone:
๐ผ Around 0.60298 โ 0.60304
๐น Price reacted strongly here (๐ฝ white arrows)
๐น Acts as a ceiling for now
๐ข Demand Zone:
๐ฝ Around 0.58800
โ
Buyers stepped in here before
๐ If price drops again, might bounce from here
๐ฅ STOP LOSS:
โ 0.58793
๐ธ Protects from deeper losses if trend breaks down.
TRADE IDEA
1๏ธโฃ Entry Idea: Wait for a pullback into the Demand Zone
๐โฌ๏ธ
2๏ธโฃ Bullish Reversal Expected:
โฌ๏ธ Bounce toward Target Zone
๐ฏ Target Point: 0.60300
๐ฆ Profit zone marked in blue
๐ธ Good Risk/Reward ratio.
Indicators & Pattern
๐ Wedge Pattern:
๐น Bullish breakout potential
๐น Currently respecting the channel
๐ EMA Crossover Area:
๐ธ Could act as dynamic support/resistance
๐ค Price hovering around EMA (0.59410)
Summary:
โ
Buy Setup if price holds above 0.58800
๐ฏ Target: 0.60300
๐ Stop Loss: 0.58793
โ ๏ธ Watch the price reaction at the Demand Zone for confirmation!
GBPUSD I Weekly CLS I Model 1 Target MOBHey, Market Warriors, here is another outlook on this instrument
If youโve been following me, you already know every setup you see is built around a CLS range, a Key Level, Liquidity and a specific execution model.
If you haven't followed me yet, start now.
My trading system is completely mechanical โ designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings. Just clarity, structure, and execution.
๐งฉ What is CLS?
CLS is real smart money โ the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
โ
Understanding the behaviour of CLS allows you to position yourself with the giants during the market manipulations โ leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
๐ก๏ธ Models 1 and 2:
From my posts, you can learn two core execution models.
They are the backbone of how I trade and how my students are trained.
๐ Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
๐ Model 2
occurs in the specific market sequence when CLS smart money needs to re-accumulate more positions, and we are looking to find a key level around 61.8 fib retracement and target the opposing side of the range.
๐ Hit like if you find this analysis helpful, and don't hesitate to comment with your opinions, charts or any questions.โจ
โ๏ธ Listen Carefully:
Analysis is not trading. Right now, this platform is full of gurus" trying to sell you dreams based on analysis with arrows while they don't even have the skill to trade themselves.
If youโre ever thinking about buying a Trading Course or Signals from anyone. Always demand a verified track record. It takes less than five minutes to connect 3rd third-party verification tool and link to the widget to his signature.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
โ David Perk aka Dave FX Hunter โ๏ธ
EURUSD I Daily Weekly CLS I Model 1- 2R setupHey, Market Warriors, here is another outlook on this instrument
If youโve been following me, you already know every setup you see is built around a CLS range, a Key Level, Liquidity and a specific execution model.
If you haven't followed me yet, start now.
My trading system is completely mechanical โ designed to remove emotions, opinions, and impulsive decisions. No messy diagonal lines. No random drawings. Just clarity, structure, and execution.
๐งฉ What is CLS?
CLS is real smart money โ the combined power of major investment banks and central banks moving over 6.5 trillion dollars a day. Understanding their operations is key to markets.
โ
Understanding the behaviour of CLS allows you to position yourself with the giants during the market manipulations โ leading to buying lows and selling highs - cleaner entries, clearer exits, and consistent profits.
๐ก๏ธ Models 1 and 2:
From my posts, you can learn two core execution models.
They are the backbone of how I trade and how my students are trained.
๐ Model 1
is right after the manipulation of the CLS candle when CIOD occurs, and we are targeting 50% of the CLS range. H4 CLS ranges supported by HTF go straight to the opposing range.
๐ Model 2
occurs in the specific market sequence when CLS smart money needs to re-accumulate more positions, and we are looking to find a key level around 61.8 fib retracement and target the opposing side of the range.
๐ Hit like if you find this analysis helpful, and don't hesitate to comment with your opinions, charts or any questions.โจ
โ๏ธ Listen Carefully:
Analysis is not trading. Right now, this platform is full of gurus" trying to sell you dreams based on analysis with arrows while they don't even have the skill to trade themselves.
If youโre ever thinking about buying a Trading Course or Signals from anyone. Always demand a verified track record. It takes less than five minutes to connect 3rd third-party verification tool and link to the widget to his signature.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
โ David Perk aka Dave FX Hunter โ๏ธ
GBPNZD: Price came back to strong bullish reversal point!GBPNZD reversed from a point we previously pointed out in our analysis. The price moved nicely, but it didnโt continue the bullish trend as we had initially expected. Since the price has decided to retest the bullish zone one more time, we thought it would be a great zone to swing buy GBPNZD. You can set two take-profit targets based on your own analysis and bias.
This analysis is purely for educational and secondary bias purposes only and does not guarantee that the price will move as described in the chart.
We really appreciate your unwavering support! โค๏ธ๐
If youโd like to lend a hand, here are a few ways you can contribute:
- Give our ideas a like
- Share your thoughts in the comments
- Spread the word about our ideas
Cheers,
Team Setupsfx_
EUR/CHF Technical Outlook โ Potential Bullish Reversal Setup๐ Pair: EUR/CHF
๐ Date: May 27, 2025
๐ Timeframe: Daily (D1)
๐ Technical Highlights:
๐น Current Price: 0.93456
๐น Key Indicators:
50 EMA (Red): 0.93824
200 EMA (Blue): 0.94342
๐ง Chart Analysis:
๐ป Downtrend Resistance Line: A clear descending trendline is pressing price lower, reinforcing a bearish structure since March.
๐ฃ Reversal Zone (Support Area):
Price is currently hovering just above the marked Reversal Point, a demand zone between 0.93000โ0.93400. Historically, this zone has acted as a launch pad for upward momentum.
๐ช Resistance Level:
Located around 0.94300โ0.94600, this zone is reinforced by the 200 EMA, making it a critical breakout area. A strong bullish close above this region could invalidate the downtrend.
๐ Two Scenarios to Watch:
โ
Bullish Breakout Scenario:
Price may bounce from the reversal zone.
A break and retest above the resistance level could lead to bullish continuation toward 0.9500โ0.9550.
Confirmation above the 200 EMA will add confidence to the breakout.
๐ Potential Buy Entry: On breakout and retest of 0.9450
๐ฏ Target: 0.9550
๐ก๏ธ Stop Loss: Below 0.9320
โ Bearish Continuation Scenario:
If price fails to hold above the reversal point, sellers may regain control.
A breakdown below 0.9300 could trigger further downside toward 0.9200 or lower.
๐ Sell Setup Invalid Until: Price closes below 0.9300 on strong volume.
๐งญ Conclusion:
This chart suggests a critical decision point for EUR/CHF. A bounce from the reversal zone followed by a confirmed break above resistance could signal the start of a medium-term uptrend. Traders should monitor price action closely for confirmation signals near the trendline and EMA zones.
๐ฆ Bias: Neutral to Bullish, awaiting confirmation
๐ง Tip: Watch for candlestick patterns (like bullish engulfing or pin bars) near the support zone for early entries.
EURUSD COT and Liquidity AnalysisHey what up traders welcome to the COT data and Liquidity report. It's always good to go with those who move the market here is what I see in their cards. I share my COT - order flow views every weekend.
๐ฏ Non Commercials closed longs and added shorts.It still seems to me like EUR dropping lower but it will have to take liquidity levels above.
๐Please be aware that institutions report data to the SEC on Tuesdays and data are reported on Fridays - so again we as retail traders have disadvantage, but there is possibility to read between the lines. Remember in the report is what they want you to see, that's why mostly price reverse on Wednesday after the report so their cards are hidden as long as possible. However if the trend is running you can read it and use for your advantage.
๐ Tip
if the level has confluence with the high volume on COT it can be strong support / Resistance.
๐ Hit like if you find this analysis helpful, and don't hesitate to comment with your opinions, charts or any questions.
Analysis done on the Tradenation Charts
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
"Adapt what is useful, reject what is useless, and add what is specifically your own."
โ David Perk aka Dave FX Hunter โ๏ธ
EUR-USD Local Long! Buy!
Hello,Traders!
EUR-USD made a retest
Of the key horizontal
Support level of 1.1369
And we are already seeing
A bullish rebound so we will
Be expecting a further
Bullish move up
Buy!
Comment and subscribe to help us grow!
Check out other forecasts below too!
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
USDJPY โ Diverging Policies Drive Yen into Pressure Zone near 14USDJPY โ Diverging Policies Drive Yen into Pressure Zone near 144
๐ Macro Landscape: JPY Stuck Between Two Diverging Forces
In recent weeks, the US dollar has regained strength as the Federal Reserve remains committed to its "higher-for-longer" interest rate stance. On the flip side, the Bank of Japan (BoJ) is maintaining an ultra-loose monetary policy, widening the yield spread between the USD and JPY, and putting pressure on the yen.
The surge in US 10-year yields toward 4.5% is further dampening demand for JPY as a safe haven, prompting institutional capital outflows from the yen and inflows into USD-based assets.
๐ฆ Central Bank Policy Divergence: Fed Remains Firm, BoJ Stays Dovish
Federal Reserve: FOMC members continue to signal patience on rate cuts. Recent inflation data (PCE, CPI) shows sticky price pressure, especially in services.
Bank of Japan: BoJ remains hesitant to normalize policy despite inflation consistently above the 2% target.
This policy divergence is reminiscent of the conditions that pushed USDJPY above 151 last year โ and current dynamics hint that history may repeat.
๐ Capital Flows: JPY Loses Safe-Haven Appeal
Global capital flow models indicate a major shift. While gold and the US dollar are once again sought-after hedges amid US-China tensions and EU fiscal risk, the Japanese yen is being overlooked.
Japanโs debt-to-GDP ratio โ the highest in the G7 โ forces BoJ to maintain low rates to keep the fiscal structure sustainable. As a result, JPY is no longer viewed as a reliable store of safety.
๐ Technical Structure: Momentum Building Toward 144.1
On the H1 chart:
Price bounced sharply from the 142.33 demand zone, forming a higher low.
EMA 13 โ 34 โ 89 show a bullish alignment ("fan-out formation") confirming short-term bullish momentum.
Resistance near 144.13โ144.20 is key: a clean breakout could trigger an extended rally to 145.00+
However, this zone may also trigger profit-taking, especially if traders react to upcoming macro data.
๐ฏ Trade Strategy Recommendations
Scenario 1 โ Buy the Pullback (Preferred):
Entry: 142.70 โ 142.90
Stop-Loss: 142.30
Take-Profit: 143.80 โ 144.13 โ 144.60
Scenario 2 โ Breakout Momentum Buy:
Entry: 144.15
Stop-Loss: 143.70
Take-Profit: 145.00 โ 145.50
โ ๏ธ Key Events to Watch:
US PCE Price Index (April): If hotter-than-expected, this would reinforce the Fedโs hawkish tone and lift USD.
BoJ Governor Speech (end of week): Any unexpected hawkish shift could trigger a short-term rebound in JPY.
From Breakdown to Breakout: AUD/JPY Flips Structure Above 92๐ก What happened recently?
At the beginning of April, AUD/JPY dropped to a low of 86, but by early May, the pair had surged over 600 pips, reclaiming the key 92 support level.
Most importantly, price reached a high of 95.50 โ breaking well above the descending trendline that started back in July 2024.
๐ The recent pullback confirms the breakout
The drop from 95.50 wasnโt bearish โ it was confirmation:
โ
Clear rejection from the 92 zone
โ
Former resistance now acting as strong support
โ
Market structure has shifted to bullish
๐ Whatโs next?
At the time of writing, AUD/JPY is trading around 92.76, and the structure suggests more upside ahead.
๐งญ My strategy:
โก๏ธ Buy dips toward 92.00
โก๏ธ Target: 95.50 โ the recent high
๐ The breakout is confirmed, the trend has shifted, and the opportunity is clear.
Let the market do the work โ we just need to stay aligned.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
EURUSD Forms Rising Wedge + Evening Star_ Bearish SetupAs I expected in the previous idea , the EURUSD ( FX:EURUSD ) started to rise after breaking the upper line of the descending channel and hit the Long Position target with Risk-To-Reward: 1.46 .
The EURUSD is trading near the Resistance zone($1.149-$1.142) .
From a Classic Technical perspective, EURUSD appears to be completing a Rising Wedge Reversal Pattern . Also, a good sign for a EURUSD reversal is the formation of an Evening Star Candlestick Pattern near the upper line of the rising wedge pattern.
Also, we can see the Regular Divergence(RD-) between Consecutive Peaks .
In terms of Elliott Wave theory , I think the EURUSD corrective waves are NOT over yet, and it seems that EURUSD has completed the main wave X inside the rising wedge pattern.
I expect EURUSD to decline to at least $1.126 AFTER breaking the lower line of the wedge pattern.
Note: If EURUSD touches $1.14903 , we can expect more pump.
Please respect each other's ideas and express them politely if you agree or disagree.
Euro/U.S. Dollar Analyze (EURUSD), 4-hour time frame.
Be sure to follow the updated ideas.
Do not forget to put a Stop loss for your positions (For every position you want to open).
Please follow your strategy and updates; this is just my Idea, and I will gladly see your ideas in this post.
Please do not forget the โ
' like 'โ
button ๐๐ & Share it with your friends; thanks, and Trade safe.
Euro may grow to resistance level and then drop to 1.1275 pointsHello traders, I want share with you my opinion about Euro. After forming a strong upward move from the buyer zone (1.11850โ1.1210), the price rose sharply, broke the mid-range resistance, and entered the seller zone between 1.1380 and 1.1400. Once it reached the upper boundary of the broadening wedge, the price bounced down from resistance at 1.1380. Now the price is trading inside a broadening wedge, showing signs of a potential reversal. After failing to hold above resistance, the Euro started to decline from the seller zone, confirming selling pressure. The current movement points to a correction within the wedge structure. I expect the Euro will continue falling toward 1.1275, my TP 1, where the support line of the wedge coincides with the upper boundary of the previous buyer zone. This zone has already shown strong reactions before and could act as a short-term reversal area. Given the recent rejection from resistance, the broadening wedge formation, and return from the seller zone, I remain bearish and anticipate further decline. Please share this idea with your friends and click Boost ๐
Disclaimer: As part of ThinkMarketsโ Influencer Program, I am sponsored to share and publish their charts in my analysis.
EUR/USD..1H chart pattern..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.
---
๐ 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 .
---
๐ 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 .
---
๐ฏ 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.
---
โ ๏ธ 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.