EUR/USD forming a descending triangle — breakdown incoming?

544 views 5 replies 0 likes 1 month ago
Alex Thompson
alex_t · 1 month ago · edited 2 hours ago
Looking at the EUR/USD daily chart, I can clearly see a descending triangle forming over the last 3 weeks. The support sits around 1.0720 and we've had three lower highs. Historically, descending triangles break to the downside about 60-70% of the time. Volume has been declining as well which supports the case for a breakout. Watch 1.0720 closely — a daily close below that could send price to 1.0650. What does everyone else see on their charts?

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4 Replies

Alex Thompson 1 month ago
I've seen this pattern play out many times. The key is patience — waiting for the confirmation candle rather than jumping in early.
Sarah Williams 1 month ago
I tried a similar approach last quarter and found that the 50 EMA works better on the 4H than the 1H for filtering trends. Less noise.
K
Kevin Pham ↩ Sarah Williams 1 month ago
The risk management aspect is often overlooked by beginners. Most traders focus too much on entries and not enough on protecting capital.
Zain Khawja 1 month ago
That's a solid strategy. Have you considered adding volume as a confirmation? It can help filter out false breakouts on lower timeframes.
James Carter 1 month ago
Interesting perspective. I've been using Fibonacci retracements alongside support/resistance and it's improved my win rate significantly.