EURUSD: Sellers Take Control Below Key Resistance, Eyes 1.1600
Hello everyone, here is my breakdown of the current EURUSD setup.
Market Analysis
EURUSD previously traded within a well-defined upward channel, confirming a bullish recovery phase after forming a strong base from the prior decline. Buyers maintained control by producing higher highs and higher lows, eventually pushing price toward a key Resistance Zone around 1.16901.1700. At this resistance area, price transitioned into a broad range, signaling a balance between buyers and sellers. Multiple attempts to hold above resistance failed, indicating growing selling pressure at the highs. Eventually, EURUSD broke down from the range, confirming a loss of bullish momentum and a shift in short-term market control.
Currently, EURUSD is trading within the descending channel and moving toward a key Support Zone around 1.1600, which previously acted as a demand area and a structural reaction level. This zone represents the next important area where buyers may attempt to slow or pause the decline.
My Scenario & Strategy
My primary scenario remains bearish as long as EURUSD stays below the 1.16901.1700 Resistance Zone and continues to respect the downward channel. Any pullbacks into resistance that show rejection can be viewed as potential short opportunities, with downside continuation toward the 1.1600 Support Zone as the first target.
However, a clean breakout and acceptance above resistance would invalidate the short bias and suggest a possible shift back toward consolidation or bullish recovery. Until that happens, market structure favors sellers, and rallies are considered corrective within the broader bearish context.
Thats the setup Im tracking. Thank you for your attention, and always manage your risk.