EURUSD: Bearish Bias Favored at 1.42
Strategy: Pending Short
EURUSD finds itself at a crucial crossroads, with prices testing a trend-defining falling trend line established from the record high above 1.60 set in July 2008. Resistance is reinforced by the 1.42 figure, a level that has acted as both significant support and resistance over recent years. Price action appears to have carved out a bearish Rising Wedge chart formation since mid-January, hinting at a reversal lower ahead. We will look for confirmation on a break through the wedge bottom (now around 1.3950) to enter short.
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