Currently monitoring EUR/USD for a potential sell setup based on several strong technical confluences:
⸻
🧠 Price Structure: Possible Quasimodo (QM) Pattern
• The chart is showing early signs of a Quasimodo pattern (QM) formation.
• Left Shoulder and Right Shoulder are developing, with a higher high (false break) between them.
• The recent Dominant Break above 1.14948 could be a liquidity grab — classic in QM setups.
• Price appears to be retesting the right shoulder area, signaling potential for a bearish reversal.
⸻
📉 AO Indicator: Bearish Divergence as Confirmation
• Clear bearish divergence between price action and the Awesome Oscillator (AO):
• Price made a higher high, but AO printed a lower high.
• This signals weakening bullish momentum — a powerful confluence for a potential drop.
⸻
⚠️ Confluences for Sell Setup:
1. ✅ Potential QM Pattern forming
2. ✅ Dominant Break followed by a potential right shoulder retest
3. ✅ Strong bearish divergence on AO
4. ✅ Price failing to break and close strongly above recent high (~1.1494)
⸻
📍 Sell Trade Plan (if confirms):
• Entry Zone: Around 1.14400–1.14600 (right shoulder zone)
• Stop Loss: Above previous high (~1.15000)
• Take-Profit Options:
• TP1: Previous structure support around 1.13600
• TP2: Deeper support zone ~1.13000–1.12700
• TP3 (Aggressive): Full QM target near 1.12100 (as marked on the chart)
⸻
⏳ Wait For:
• Bearish rejection or momentum candle on 4H or 1H
• AO to cross below 0 or accelerate red bars for extra confirmation
⸻
💡 Conclusion:
EUR/USD is showing signs of a bearish reversal with a textbook QM setup supported by AO divergence. If the right shoulder holds and bearish momentum kicks in, this could offer a high-probability short opportunity.
⸻
🧠 Price Structure: Possible Quasimodo (QM) Pattern
• The chart is showing early signs of a Quasimodo pattern (QM) formation.
• Left Shoulder and Right Shoulder are developing, with a higher high (false break) between them.
• The recent Dominant Break above 1.14948 could be a liquidity grab — classic in QM setups.
• Price appears to be retesting the right shoulder area, signaling potential for a bearish reversal.
⸻
📉 AO Indicator: Bearish Divergence as Confirmation
• Clear bearish divergence between price action and the Awesome Oscillator (AO):
• Price made a higher high, but AO printed a lower high.
• This signals weakening bullish momentum — a powerful confluence for a potential drop.
⸻
⚠️ Confluences for Sell Setup:
1. ✅ Potential QM Pattern forming
2. ✅ Dominant Break followed by a potential right shoulder retest
3. ✅ Strong bearish divergence on AO
4. ✅ Price failing to break and close strongly above recent high (~1.1494)
⸻
📍 Sell Trade Plan (if confirms):
• Entry Zone: Around 1.14400–1.14600 (right shoulder zone)
• Stop Loss: Above previous high (~1.15000)
• Take-Profit Options:
• TP1: Previous structure support around 1.13600
• TP2: Deeper support zone ~1.13000–1.12700
• TP3 (Aggressive): Full QM target near 1.12100 (as marked on the chart)
⸻
⏳ Wait For:
• Bearish rejection or momentum candle on 4H or 1H
• AO to cross below 0 or accelerate red bars for extra confirmation
⸻
💡 Conclusion:
EUR/USD is showing signs of a bearish reversal with a textbook QM setup supported by AO divergence. If the right shoulder holds and bearish momentum kicks in, this could offer a high-probability short opportunity.
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.
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.