On the weekly EUR/USD chart, a large technical pattern is taking shape. The price closed at 1.1438. The pair is squeezed at the intersection of a fan of ascending trendlines and a global descending resistance that stretches from the historical highs. All the current trading is stuck at the maximum volume of the horizontal profile. The liquidity shelf is concentrated in the 1.1400–1.1520 range. The bulls are trying to hold the main fan line that comes from the very bottom at 1.0145. Sellers, in turn, are pressing from above and not allowing an upside spike to develop. A breakout from this global consolidation is expected next week. The most logical approach is to trade based on the actual breakout of the key sloping lines. My priority is still to the upside. I’m waiting for the market to open. If buyers manage to push the price above 1.1520, a strong impulse will begin. In that case, my target is a move toward the 1.1690 resistance. I will hide my stop behind the ascending trendline. The bearish scenario will be activated if the fan is broken to the downside. If sellers drag the pair below 1.1345, a prolonged sell-off will begin. The long-term trend will be broken. Then the target will be the strong horizontal support at 1.1000.
