EURUSD: Navigating a Key Technical Juncture

The EURUSD pairing is currently perched at a pivotal point, providing traders with an intriguing technical panorama. When evaluating the chart, the green rectangles stand out prominently, symbolizing the bullish corrections witnessed over the recent years. Presently, the currency pair grapples with the 61.8% Fibonacci resistance, a significant level that’s held firm, presenting an enticing opportunity for those considering a short position.

Drawing parallels with historical patterns, it’s noteworthy that prior corrections culminated with an extensive head and shoulders formation. Fast forward to the current chart landscape, and we observe the potential emergence of a triple top formation. It’s essential to note that shorting at this stage, while against the prevailing trend, could offer a favorable risk-to-reward ratio for the bold trader.

However, for those who find the idea of shorting now a tad premature or risky, another plausible strategy could be to await a confirmed breakout below the red neckline of the impending triple top formation.

The bearish outlook, as outlined, would be rendered moot should the price breach the 61.8% Fibonacci resistance convincingly. Still, given the existing setup, a corrective move downwards seems increasingly likely.

Source: https://www.axiory.com/analytics/technical-analysis/eurusd-navigating-a-key-technical-juncture