This Rising Wedge is About To Break [BEARISH SCENARIO]

Let's look into more detail for this bearish scenario for EURCHF. We can see a rising wedge here, together with a horizontal zone of resistance.

So far EURCHF has behaved very nicely within the rising wedge, with a clean oscillic bullish pattern. However, this behaviour is about to break as the price is closing in towards the zone of horizontal resistance. In this bearish scenario that I drew, I expect the price to hit the horizontal resistance, get a rejection and go down. It then will hit the bottom trendline of the rising wedge, and will use the bearish momentum to break through the support, and spike downwards temporarily.

This is where the opportunity for the trade comes in. We can enter the trade near the horizontal resistance, with a short position. The stop loss will be above the resistance zone, to make sure we exit the trade when the bearish scenario gets denied. Happy trading everyone :)

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!


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