EURUSD: Massive Ascending Wedge-Formation, Bearish Setup!EUR/USDOANDA:EURUSDVincePrinceHello There, welcome to my new analysis about EURUSD on the daily timeframe perspective. The EURUSD recently faced heavy scrutiny because of the economic events since the beginning of the year. The rise in oil prices, potential inflation pressures, and trade scrutiny have put bearish pressure on the price action. These events should not be underestimated in any case. Although in the long run the picture could be quite different, in the shorter term these terms are highly crucial. When looking at my chart, we can see there that EURUSD formed this major ascending wedge formation. Within this wedge, EURUSD already completed the confirmational wave count before it pulled back bearishly from the upper boundary. Since then the price action has formed the breakdown below the lower boundary. EURUSD continued to test the 300-MA marked in red in my chart. Now it is on the brink of forming the next bearish bear flag formation. EURUSD faces several strong resistance levels. The upper boundary of the bear flag formation, the lower boundary of the major ascending wedge, and the 50-MA marked in blue all form a substantial bearish confluence zone. From this area, a pullback towards the downside is highly likely. Once EURUSD breaks below the bear flag and forms the bearish confirmation setup, this is going to set up the next bearish wave towards the downside. The main target zone of this bear flag formation is within the 1.12 level. Once this level has been reached, further assumptions about the momentum and price action dynamics need to be made. If trade stabilizes and the oil pressures go down, there is a chance that EURUSD stabilizes within this area once it has been reached and a potential reversal instead of a continuation emerges. The next times will tell a lot about the future prospects. What do you think about EURUSD? Let us know in the comments! Thank you a lot for the support. Highly appreciated! VP