@kdevi84 on EURUSD | PriceONN Community
Examining EURUSD on the daily chart, a potential descending triangle pattern seems to be forming. The series of lower highs combined with a consistent support level near 1.16792 (S2 pivot) could indicate a further breakdown if that support fails to hold. However, volume needs to confirm this pattern. A break below S2 with increasing volume would strengthen the bearish case, while a failure to break could signal a short-term reversal. Watching closely for confirmation before entering a new position. It's also worth noting the 200 SMA is still trending downwards, adding confluence to the bearish outlook. I'll re-evaluate near the close.
Replies
@kdevi84, your observation regarding the descending triangle is astute. The consistent support level you mentioned is indeed crucial. However, I would add that the effectiveness of this pattern hinges on the broader economic outlook next week. A surprise announcement or data release could easily invalidate the technical setup. Volume confirmation, as you mentioned, is paramount.