Cabana Capitals Blog Forex Broker EUR/USD: Downsid breakout of symmetrical Triangle pattern.

EUR/USD: Downsid breakout of symmetrical Triangle pattern.

EUR/USD: Downsid breakout of symmetrical Triangle pattern. post thumbnail image

Overview:-  From last couple of days EUR/USD was unable to move on either side as we can see that it was moving in very narrow range it looks like both bulls and bears are fighting to take it at their own corner. Well the tug of war has been ended with bear’s winning status.

Bears got the benefit of negative sentiments of Corona epidemic and even technically also it is showing further weakness. The primary trend is down and even secondary trend `is also down so in an downtrend market always sell on high will be profitable strategy.

Till the time, EUR/USD is doing so well and providing both side movement and traders are getting opportunity at both sides trading opportunity. In our previous report also we mentioned to sell the pair at 1.1080-90 target is 1.0950 and 1.0850 stop loss is 1.1200 and our both target have been achieved so we are expecting that our readers must have made profit from this move.

Well the current picture depicts that once again bears have their full control on the pair for the time being and making successively lower lows and lower highs on daily and hourly chart.

Technical prospective:-

On daily technical chart we can see that a downside breakout of symmetrical triangle has been witnessed which is providing us bearish signal well the way bears are reacting it seems like they are going to break the low of 1.0650 level and furthermore downside movement is awaited.

Overall the daily candles are hanged down below the moving averages which indicate that we may see further downfall in the pair. Momentum is supporting the bears even we will get further confirmation below 1.0770 level. The 1.0770 level is key support level as we have seen bounce from here itself but now it seems like bears will give us breakout of this level.

Odds are in favor of bears and we will keep our view bearish on it as long as 1.0900 level remains intact on closing basis.  RSI along with MACD indicator is supporting the bears on daily along with hourly chart. The red dots of SAR is favoring the bears and we would suggest that we may see a free fall.

Well, the 1.0787 level is a support level followed by 1.0650 level. The 1.0900 level is key resistance level followed by 1.0950 level. Daily to weekly bias remains bearish.

What next:-  Today’s closing matter a lot if bears able to sustain below 1.0770 level then bulls are going to rock in upcoming trading sessions.

Trade idea:-  Based on chart and studies above we can suggest that sell the pair at  1.0810-820  target is 1.0700 and 1.0650 stop loss is 1.0910.

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