Technical Analysis of the EUR/USD Pair 
The EUR/USD chart on the hourly (H1) timeframe shows interesting price action between August 18 and 26. After a strong and noticeable rise in the first few days, the pair entered a clear descending price channel, indicating a correction or consolidation phase after the initial rally. Initial Rise: The pair started with a strong upward move from levels below 1.1565 on August 18, breaking through resistance at 1.1600 and 1.1650, and reaching 1.1712 on August 20. Descent Channel: Following this rise, a descending price channel (highlighted in blue) formed, with the price bouncing between its upper and lower boundaries, forming lower highs and lower lows. Support and Resistance Levels: Resistance: The horizontal levels at 1.1712 and 1.1686 provide strong resistance, especially the latter, from which the price bounced several times. The black slanted line also represents a descending trend line acting as dynamic resistance. Support: The horizontal levels at 1.1653 and 1.1600 are key support levels. The 1.1600 level is almost the lower boundary of the channel and has bounced off it multiple times. Current situation: The pair is currently trading at 1.1663, slightly above the 1.1653 support level, but below the black descending trend line and the upper boundary of the channel. Recent candles show selling pressure after failing to break through the 1.1686 resistance. EURUSD trading within the descending channel reflects short-term bearish control following the initial rally. This channel is a common corrective pattern and could indicate a continuation of the previous uptrend if broken upwards, or the start of a deeper downtrend if broken downwards. The price is at a critical juncture, hovering around the 1.1653 support and the descending trend line.
Trading Recommendations (EURUSD): Bullish Scenario: Buy: Consider buying on a clear break above the descending black line and the 1.1686 resistance level, confirmed by strong bullish candles. Buy Targets: The first target could be 1.1712, followed by a test of the upper channel boundary. Stop Loss: Place the stop loss below 1.1653. Bearish Scenario: Sell: If the 1.1653 support level is broken to the downside, look for selling opportunities. Sell Targets: The first target would be 1.1600, followed by the lower channel boundary. A break below 1.1600 could open the door for further declines. Stop Loss: Place the stop loss above 1.1686.
