Breakout or Breakdown – Which Way Will the Market Move Next?Market Outlook – 2H Chart Analysis
After analysing the 2-hour chart, we can observe that the price has been consistently trading within a respected ascending channel since April 10, 2025. Following the formation of an all-time high (ATH) at 3357.775, the market experienced a shallow retracement, dipping just below the 38.20% Fibonacci level.
Currently, the price is consolidating around 3327.375 within a falling broadening wedge pattern, which is typically considered a bullish continuation pattern. The retracement zone between the 38.20% and 50.00% levels suggests that buyers remain in control of the trend.
Looking ahead to next week, as long as the price:
• Remains inside the ascending channel
• Holds above the key support level at 3288
• And eventually breaks above the falling broadening wedge and the resistance at 3332
…I anticipate a potential rally toward our first target, with the second target aligning with the 161.80% Fibonacci extension level.
However, if the price breaks below the support level of 3288, a further decline toward 3237.70 could be expected.
⚠️ Reminder:
Every trade carries risk. Strict adherence to your risk management strategy is essential to protecting both capital and profits.
Happy Trading,
SpicyPips
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