EURUSD Short: Continuation Within the Downward Wedge

[Antony Bishop]

Hello, traders! The prior market structure for EURUSD was a bullish ascending channel, which failed and led to a breakdown. This reversal has established the current bearish market phase, which has taken the form of a downward wedge. This pattern has been guiding the price auction lower through a series of lower highs and lower lows, confirming that seller initiative is dominant.

Currently, the price action is consolidating within this wedge. Following a minor bounce, the market is showing signs of weakness and appears ready to continue the established downtrend, respecting the wedge's boundaries.

My scenario for the development of events is a direct continuation of the decline within this wedge. I expect the price to complete another leg down from the current levels. The take-profit is therefore set directly at the 1.1615 level, targeting the demand zone which aligns with the lower support line of the pattern. Manage your risk!