Hello, traders! The price auction for EURUSD has been characterized by a period of consolidation, which has formed a large symmetrical triangle. This pattern of contracting volatility was established by a series of key pivot points, with a pivot point high anchoring the 1.1720 supply area and a pivot point low defining the 1.1575 demand area. These actions have set the stage for the current state of market equilibrium, squeezing the price between the supply line and the demand line.
Currently, the auction is at a critical inflection point. Following a bounce from the ascending demand line, the price has rallied across the pattern and is now directly testing the descending supply line. This area represents a significant confluence of resistance, as it aligns with the horizontal 1.1720 - 1.1740 supply zone, a known territory of seller activity.
The primary scenario anticipates that sellers will successfully defend this resistance confluence and reject the current rally. A confirmed failure to break above the supply line would validate the integrity of the triangle pattern and likely initiate a new downward rotation. This would shift the short-term initiative back to the bears. The take-profit for this rotational play is therefore set at 1.1620, targeting the ascending demand line. Manage your risk!
Currently, the auction is at a critical inflection point. Following a bounce from the ascending demand line, the price has rallied across the pattern and is now directly testing the descending supply line. This area represents a significant confluence of resistance, as it aligns with the horizontal 1.1720 - 1.1740 supply zone, a known territory of seller activity.
The primary scenario anticipates that sellers will successfully defend this resistance confluence and reject the current rally. A confirmed failure to break above the supply line would validate the integrity of the triangle pattern and likely initiate a new downward rotation. This would shift the short-term initiative back to the bears. The take-profit for this rotational play is therefore set at 1.1620, targeting the ascending demand line. Manage your risk!
Trade active
The rejection from the supply zone has occurred as anticipated. The bearish initiative is now confirmed, and the price auction is expected to continue its decline.Trade closed: target reached
The primary short thesis remains fully intact. The expectation for a continued decline towards the demand line of the triangle stands, with the move likely to extend into the next trading session.
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bingx.com/partner/CryptoTrading99
Please write your opinion about where price will go.
Please write your opinion about where price will go.
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.