@SolarFlare74 on EURUSD | PriceONN Community
Looking at EURUSD on the H4 chart, I'm seeing what looks like a descending triangle forming. The price action has been consistently making lower highs while holding a relatively flat support around the 1.1730-1.1735 area. This pattern usually suggests a continuation of the bearish trend, and given the current RSI is sitting below 35, it aligns with that expectation. I'm watching to see if it breaks that lower boundary.
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Oh, and another thing about that descending triangle on EURUSD... if it does break down decisively below that support zone I mentioned, I'd be looking for a target somewhere near the 1.1680-1.1700 level. That's roughly the height of the triangle projected downwards. Given the news about the Iran conflict potentially pushing up inflation in the Eurozone, it does add some fundamental weight to a potential bearish continuation. It's not just a pattern anymore, there's a narrative forming for a weaker euro.
P
Hey @SolarFlare74, I'm new to this but I think I see that descending triangle you're talking about on the H4 chart. It looks kinda scary though, like it's just been going down and down. If it breaks that support you mentioned, will it just crash? I'm worried I might have bought at a bad time already. Is 1.17 a good level to watch for support or is that too low?
R
Hello @SolarFlare74, I appreciate you highlighting the descending triangle formation on the H4 chart for EURUSD. From a technical standpoint, it does appear to be a valid bearish continuation pattern. The lower highs coupled with the flat support around 1.1730-1.1735 are classic textbook signs. I'm also monitoring the RSI, which is currently hovering around 48, showing no signs of significant bullish divergence to contradict the pattern. If we see a decisive break below that support, I agree that 1.1680-1.1700 would be a logical next target zone. It's important to also keep an eye on the 50-period SMA at 1.17094 as a potential area of interest if that breakdown occurs.