Lets look at chart , we can see potential descending channel pattern which price has been respecting from many sessions , and as EURUSD is a stable pair we may assume price action to keep on following and respecting the channel till price action remains bearish and price does not closes above channel pattern ..
As per chart we have potential 3 conditions :
1. Break below support line : As price has already closed below ascending trendline with resistance of descending channel , we may see further downside on close below support if bearish price action to continue towards bottom of channel..
2. Break above descending trendline : Bearish movement is supported by descending trendline , but as price still remains near to top of channel we are not very much willing to buy unless price closes above channel , so therefore we can expect potentiall sideways movement , and horizontal support line and top of channel line will form triangle pattern : therefore price action will enter in triangle pattern and we will wait for breakout of triangle for trend confirmation or range trade inside triangle ..
3. Break above Channel : if this condition is fulfilled then our bearish bias will be put on hold and we will look for potential long based on price levels of break out and possible retracement of price to retest channel top..
do comment ur views.. thanks..
As per chart we have potential 3 conditions :
1. Break below support line : As price has already closed below ascending trendline with resistance of descending channel , we may see further downside on close below support if bearish price action to continue towards bottom of channel..
2. Break above descending trendline : Bearish movement is supported by descending trendline , but as price still remains near to top of channel we are not very much willing to buy unless price closes above channel , so therefore we can expect potentiall sideways movement , and horizontal support line and top of channel line will form triangle pattern : therefore price action will enter in triangle pattern and we will wait for breakout of triangle for trend confirmation or range trade inside triangle ..
3. Break above Channel : if this condition is fulfilled then our bearish bias will be put on hold and we will look for potential long based on price levels of break out and possible retracement of price to retest channel top..
do comment ur views.. thanks..