EUR/USD - Ready for a Massive Breakout?

24 Feb

The EUR/USD pair is currently respecting a well-defined ascending channel, displaying clear bullish market structure with higher highs and higher lows. After testing the bottom of the channel three times, price has only made higher lows, indicating a shift in momentum and a strong demand zone. This suggests that buyers are stepping in aggressively at lower levels, reinforcing the bullish outlook.

🔹 Key Levels & Observations 🔹

🔸 Fair Value Gap (FVG) as Strong Support.
One of the most significant technical factors in this setup is the fair value gap (FVG), which has consistently acted as a strong support level. Price has been creating higher highs after bouncing from this zone, making it a crucial area of interest. This FVG has been filled, and price is showing signs of respecting it, further solidifying the bullish sentiment.

🔸 Bottom of the Channel Successfully Defended.
The market has tested the bottom of the ascending channel three times, and after each test, price has only made higher lows. This kind of price action is a strong indication that buyers are in control, absorbing selling pressure and pushing price higher.

🔸 Strong Resistance at the top.
The black horizontal resistance line represents a key level where price has struggled to break above in the past. It has been tested multiple times, confirming its significance. A clean breakout above this level would serve as confirmation that bulls have full control, potentially leading to a strong continuation to the upside.

🔸 Bullish Structure Confirmed?
As price continues forming higher highs and higher lows, the overall market structure remains bullish. As long as price respects the fair value gap and the ascending channel, the expectation is for a continuation of the uptrend.

📌 Trading Plan & Potential Scenarios 📌

✅ Bullish Scenario:

• If price holds above the fair value gap (green support zone) and continues to form higher lows, the bias remains bullish.
  
• A break and close above the strong resistance level (black line) would be the ideal confirmation for further upside movement.
  
• If a breakout occurs, we could see a strong rally as trapped sellers get liquidated and momentum builds.
  

❌ Bearish Scenario (Invalidation Level):

• If price fails to hold the FVG support zone and starts forming lower highs, we may see a deeper correction towards the lower boundary of the channel.
  
• A confirmed break below the channel could signal a trend reversal.
  

📉 What to Watch for Confirmation 📈
🔹 Break and close above the strong resistance (black line) for a bullish breakout confirmation.
🔹 Continuation of higher lows & higher highs within the ascending channel.
🔹 Strong buying pressure at the fair value gap to maintain the bullish bias.

Final Thoughts:
At this stage, the EUR/USD pair is looking bullish, with the market structure aligning with a continued upward move. The fair value gap is a key support level, and as long as price holds above it, the trend remains intact. A breakout above resistance could signal a strong move to the upside, potentially triggering more buying interest.

What are your thoughts on this setup? Do you think we’ll see a breakout above resistance soon? Let me know in the comments! 🚀📈

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24 Feb

Trade aktif

It looks like we are rejecting from the fvg above price, trade is still valid