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EURUSD Technical Analysis (Educational Breakdown)

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EURUSD Technical Analysis (Educational Breakdown)

1. Market Structure Overview

The chart shows a clear downtrend phase that started after failing to break the major resistance around 1.1780 – 1.1820.

Price formed lower highs and eventually broke below a rising trendline, signaling a shift from bullish momentum to bearish control.

Recent movement shows a retracement toward a defined entry zone, suggesting a short-term pullback opportunity.

2. Key Levels

Resistance Zone (1.1780 – 1.1820): This area has acted as a strong supply zone in the past, rejecting bullish attempts and triggering heavy sell-offs.

Support Zone (1.1340 – 1.1380): A key demand area where previous reversals took place.

Current Entry Zone: Between 1.1697 – 1.1750, aligning with a minor resistance zone and previous supply reaction.

3. Price Action Insights

Fair Value Gap (FVG) identified earlier near 1.1700 served as a reaction zone before a push downward.

The price is now revisiting an area near the previous imbalance, which aligns with a confluence of resistance and short-term overbought conditions.

If price action rejects the entry zone, a bearish swing toward 1.1534 is likely.

4. Trade Setup Idea (Short Bias)

Entry: 1.1697 – 1.1750 (retest of broken structure).

Stop Loss: Above 1.1772 to avoid stop hunts beyond resistance.

Target: First take profit at 1.1534; extended target toward 1.1400 if bearish momentum persists.

5. Risk Management & Educational Note

This setup is based on supply & demand principles plus market structure shifts.

Always confirm entries with lower-timeframe rejection patterns before executing.

Protect capital with a maximum of 1–2% risk per trade and adjust lot sizes accordingly.

📌 Summary:
EURUSD is currently testing a high-probability short zone after a structural breakdown. If rejection occurs, sellers could push price toward mid-range support at 1.1534, and potentially deeper toward the 1.1400 zone. However, if bulls manage to reclaim and close above 1.1780, this bearish view becomes invalid.

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