EURUSD, BEAR-Wedge Completed, BEAR-Market Ongoing, BEAR Waves!

Hello There!

Welcome to my new analysis of EURUSD from several timeframe perspectives, on the current underlying market dynamics, and on what should be expected within the current market. There is a main primary indication, the massively spreading inflation within the EUR that is creating a huge inflation gap between the EUR and USD, and when such an inflation gap develops between two currencies this means the inflation gap in currency pairs in which the inflation is higher compared to the other pair is highly bearishly inclined.

From my chart perspective, this means that EURUSD has been in a continued bear-market since July 2023 forming several lower lows and already completing this gigantic bearish ascending wedge formation with the breakouts towards the downside accelerating the bearish momentum and confirming the 200-EMA as the most prevalent resistance factor. Now EURUSD is already continuing to form the bear flag below the 200-EMA which is simultaneously the wave B within the whole bearish wave-count.

Once the bear-flag formation has been completed in the near future with the inflation gap developments reaching further bearish inclinations this is going to activate the massive wave C acceleration. In this case, the first target will be the at pari level at 1 EURUSD, with a continued bearish momentum the next targets will be under pari at 0.98872 and below this at 0.977. Especially when the bearish momentum accelerates further with further smart money market operators increasing the bearishness the wave is going to continue.

The bearish market wave setup, confirmed by the enormous inflation rate gap, together with the bearish smart money operators to increase the short side open interest is so present that that the upcoming bear market wave will be inevitable. In this case, it will be important for a trader to position on the right side of the markets before all these major disruptions are actually set up. Nonetheless, it will be a highly important dynamic to consider here especially once the EURUSD has reached the target zones.

In this manner, thank you everybody for watching my analysis of EURUSD. Support from your side is greatly appreciated.

VP

Comment:

UPDATE: EURUSD in recent times increased with the massive bearish volatility spike below the boundary of the bear flag formation.

Trade Entering Scenario 1: Entering EURUSD on 1.073 before the massive bearish volume came in.

Trade Entering Scenario 2: Entering EURUSD below the lower boundary.

Comment:

UPDATE: EURUSD continued to print massive bearish continuations forming several lower lows and extending the bear market wave.

EURUSD is increasing further bearish volume in combination with crucial interest rate hikes to add to the prevailing bearish sentiment.

Continuation and targets are active.