EURUSD: Fake Breakdown from Support Signals Potential Reversal
Hello everyone, here is my breakdown of the current EURUSD setup.
Market Analysis
EURUSD previously traded inside a clearly defined range, where price moved sideways and showed equilibrium between buyers and sellers. From this range, price attempted a bullish breakout, but the move resulted in a fake breakout into the upper area, signaling strong selling pressure inside the Resistance Zone around 1.17501.1760. This zone was tested multiple times, and each attempt to hold above it failed, confirming it as a strong supply area.
Currently, price is trading below the key resistance and remains structurally bearish. The highlighted move suggests a potential corrective pullback from support toward the descending channel resistance, which aligns closely with the horizontal resistance zone around 1.1750.
My Scenario & Strategy
My primary scenario: as long as EURUSD holds above the 1.1680 Support Zone and no strong bearish acceptance occurs below it, the bullish bias is favored in the short term. I expect buyers to push price higher toward the descending channel resistance and horizontal Resistance Zone around 1.1740, which acts as TP1. A clean breakout and acceptance above the 1.1750 Resistance Zone would confirm stronger bullish continuation and open the door for a move toward higher highs.
However, a decisive breakdown and close below the support zone would invalidate the long scenario and signal renewed bearish continuation. For now, the market is at a key reaction area, and the long setup depends on buyers continuing to defend support.
That's the setup I'm tracking. Thank you for your attention, and always manage your risk.