Who could have thought that the EURUSD's parity party last month of July was over?

The ever hawkish Greenback's mission to upheaval the financial markets is far from over.

Euro bulls got frustrated this week! After printing a twin tower of supports last 10th and 11th August, the Greenback marched a 5-day rally.

The DXY's current weekly candle closing can be an obvious bullish outcome.

When was the last time that the parity party was enjoyed? It is way back December of 2002 where the US dollar index hit its top before a bearish long-term reversal at least for that period.

This was also the time when Euro has finally broken its 3 year supply against the Greenback. Made a 67-month rally before officially started the bear market.

August candle has still some few weeks left up its sleeves for some relief streaks but I doubt it. I suppose the current month's remainder will continue to find a lower wick tail to satisfy the angry bears!

Capitalising EURUSD's monthly Elliot wave falling wedge structure through putting some long position around its 3-year supply region which I mentioned earlier. It is acting clearly a demand for now at least least.

At the time of writing this analysis, EURUSD is losing precious pips! Every crucial pip that is lost inspires the bears even more to rechallenge the parity!

Hoping for a not-so-big bearish spinning body August month candle that will help maintain the validity of the EURUSD's long-term falling wedge pattern. Technically saying, the said pattern has counter-trend attempts to reverse the situation.

From this scenario, I apply my short-term trade plan that includes putting a stop loss near the July lows but a bit lower for a fresh swing low this month can pave more ugly downward tractions, totally invalidating the long-term falling wedge!

The long entry is placed a little higher from last month's low. Want to see a beautiful July and August double bottom candles!

I'm looking for a 190-200 pips move TP once EURUSD's price volatility kicks in to the upside. Also near the newly depleted weekly support.

The plan has an ambitious R:R score of 5.406.

EURUSD Bears Getting Ready for the Parity Rechallenge

Aug 19 2022

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