EURUSD: Important Decision Ahead! Bearish Scenario Explained

hey guys,

EURUSD has perfectly closed on the support line of a rising parallel channel .

as it been said earlier, we still remain bullish biased until the market is trading within.
however, the market is clearly slowing down and we must consider that.
for that reason, we should be prepared for a bearish breakout.

here is your plan, that will help you properly trade a bearish breakout:

first of all, 1.178 is our last horizontal higher low level.
to avoid a false breakout, violation of the support of the channel is not enough!
we need a daily candle close below this horizontal support as well, that is what confirms the breakout.

then we can sell the retest of the broken channel.
the resistance cluster will be the expanding area between a horizontal higher low and rising support of the channel.
I would suggest looking for a confirmation signal within that area to short.

our goal will be 1.16 level based on a weekly structure.