EURUSD: Fake Breakout at Resistance Signals Move Toward 1.1680
Hello everyone, here is my breakdown of the current EURUSD setup.
Market Analysis
EURUSD previously traded inside a clear downward channel, reflecting sustained bearish pressure during that phase. After forming a base, price broke out of the descending channel and transitioned into a strong upward channel, confirming a shift in market control toward buyers. This bullish leg was supported by a sequence of higher highs and higher lows, showing healthy upside momentum. As price approached the key Resistance Zone around 1.1770–1.1780, bullish momentum started to weaken. Multiple attempts to break above this resistance resulted in fake breakouts, signaling strong seller interest at the highs.
Currently, following these rejections, EURUSD failed to hold above the upper boundary of the ascending channel and broke below short-term support, indicating a loss of bullish structure. Price is now compressing below resistance and forming a structure that resembles a triangle breakdown, suggesting increasing downside pressure. Below current price, a well-defined Support Zone around 1.1680 stands out as the next key area where buyers may attempt to defend and slow the decline.
My Scenario & Strategy
My primary scenario: as long as EURUSD remains below the 1.1770 Resistance Zone and continues to respect the broken channel / triangle resistance, the bias favors sellers. Any pullbacks toward resistance that show rejection can be considered short opportunities, with downside continuation toward the 1.1680 Support Zone as the main target.
However, a clean breakout and acceptance back above resistance would invalidate the short scenario and signal a potential return to bullish continuation. Until then, structure and price action favor further downside or corrective movement lower.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
Market Analysis
EURUSD previously traded inside a clear downward channel, reflecting sustained bearish pressure during that phase. After forming a base, price broke out of the descending channel and transitioned into a strong upward channel, confirming a shift in market control toward buyers. This bullish leg was supported by a sequence of higher highs and higher lows, showing healthy upside momentum. As price approached the key Resistance Zone around 1.1770–1.1780, bullish momentum started to weaken. Multiple attempts to break above this resistance resulted in fake breakouts, signaling strong seller interest at the highs.
Currently, following these rejections, EURUSD failed to hold above the upper boundary of the ascending channel and broke below short-term support, indicating a loss of bullish structure. Price is now compressing below resistance and forming a structure that resembles a triangle breakdown, suggesting increasing downside pressure. Below current price, a well-defined Support Zone around 1.1680 stands out as the next key area where buyers may attempt to defend and slow the decline.
My Scenario & Strategy
My primary scenario: as long as EURUSD remains below the 1.1770 Resistance Zone and continues to respect the broken channel / triangle resistance, the bias favors sellers. Any pullbacks toward resistance that show rejection can be considered short opportunities, with downside continuation toward the 1.1680 Support Zone as the main target.
However, a clean breakout and acceptance back above resistance would invalidate the short scenario and signal a potential return to bullish continuation. Until then, structure and price action favor further downside or corrective movement lower.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.
Trade ativo
As we can see, the euro is gradually declining as we predicted. The highs are getting lower and lower.Trade fechado: objetivo atingido
We see that patience is being rewarded. Our analysis worked and the euro reached our target.
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
🚀If you want became part of my trading team & start making big profits welcome to my paid VIP signals group, write me✏️ t.me/ratner_1
❤️Welcome to my telegram channel👉🏼 t.me/ratner_trading
❤️Welcome to my telegram channel👉🏼 t.me/ratner_trading
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.