Euro / U.S. Dollar
Short

EUR/USD) breakout Analysis Read The Chaptian

1 958
SMC trading point update



Technical analysis for EUR/USD (Euro/US Dollar) on a 3-hour timeframe presents a bearish outlook. Here's a breakdown of the key ideas and elements in the analysis:


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1. Breakdown of Rising Channel

Ascending Channel: Price was moving upward within a clearly defined channel.

Breakout: The price broke below the ascending channel, indicating a potential trend reversal or correction.



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2. Resistance Zone (Yellow Box)

Multiple Rejections: Red arrows mark points of rejection from the resistance area.

“Breakout” Label: Indicates this area was previously a support that turned into resistance after the price dropped below it.



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3. EMA 200

The 200 EMA is plotted and the price is trading slightly above it, but very close.

A break and sustained movement below the 200 EMA would typically support a bearish trend continuation.



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4. Bearish Projection

Downward Zigzag Path: Implies an expected short-term correction followed by further decline.

Target Points:

First target: 1.11307

Second, more extended target: 1.10639




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5. RSI (Relative Strength Index)

Current Value: Around 38.84, which is near the oversold region (30).

Bearish Momentum: RSI is trending downwards, suggesting strengthening bearish momentum.



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6. Fundamental Events

Multiple icons at the bottom (e.g., flags, calendar) indicate upcoming economic events/news which could influence volatility and confirm or invalidate the move.



Mr SMC Trading point

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Conclusion:

This analysis suggests a bearish short- to medium-term outlook for EUR/USD, especially if price confirms a break below the 200 EMA. The resistance zone (around 1.133–1.135) is now seen as a supply zone, and the targets are around 1.113 and 1.106.


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Suggestions/Considerations:

Watch the 200 EMA: A solid break below it would reinforce the bearish bias.

Monitor Fundamentals: U.S. and Eurozone economic news could heavily impact price action.

RSI Oversold Caution: If RSI dips further, a bounce might occur before full target completion.




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