Technical analysis of EUR/USD (Euro / U.S. Dollar) on the 2-hour timeframe and outlines a bearish reversal setup after a rally into resistance.
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🧭 Analysis Overview:
Current Bias: Bearish correction/reversal from resistance
Trend Context: Price is reacting from the upper boundary of a rising channel
Indicators:
EMA 50 (1.15305) and EMA 200 (1.14734) are in a bullish crossover, but price is rejecting near the highs.
RSI (14): At 63.42, nearing overbought territory, signaling possible weakening momentum.
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📌 Key Technical Elements:
1. Resistance Level:
Price tested a key horizontal resistance near 1.1610 – 1.1620 and faced strong selling pressure (indicated by red arrows).
This area aligns with the upper trendline of the ascending channel, increasing the likelihood of a rejection.
2. Bearish Price Path:
The projected path shows a potential series of lower highs and lower lows, implying a correction or short-term downtrend.
The drop targets the channel support line near 1.14734 and potentially as low as the horizontal key level at 1.14578.
3. Key Support Level:
Around 1.14578, marked by historical price reactions and aligned with EMA 200, this is a logical bearish target.
4. Measured Move:
Vertical measurement suggests a -1.58% downside move, reflecting the size of the previous bullish rally that may now unwind.
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🎯 Trading Idea:
Setup: Bearish reversal from resistance
Entry: Near 1.1600–1.1620 zone after confirmation (e.g., bearish candlestick or divergence)
Target: 1.14734 first, 1.14578 as extended target
Stop-Loss: Above resistance (1.1630+)
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🛑 Risk Factors & Considerations:
Watch for fundamental events (indicated by icons), including economic releases, that can cause volatility.
RSI divergence or weakening volume would further confirm the bearish bias.
If price breaks above the resistance zone, this analysis would be invalidated and a bullish breakout may occur.
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✅ Summary:
This is a bearish pullback setup following a resistance rejection near the top of a rising channel. The idea anticipates a drop toward key support levels, especially around 1.14734–1.14578. Risk is defined by the invalidation zone above resistance.
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---
🧭 Analysis Overview:
Current Bias: Bearish correction/reversal from resistance
Trend Context: Price is reacting from the upper boundary of a rising channel
Indicators:
EMA 50 (1.15305) and EMA 200 (1.14734) are in a bullish crossover, but price is rejecting near the highs.
RSI (14): At 63.42, nearing overbought territory, signaling possible weakening momentum.
---
📌 Key Technical Elements:
1. Resistance Level:
Price tested a key horizontal resistance near 1.1610 – 1.1620 and faced strong selling pressure (indicated by red arrows).
This area aligns with the upper trendline of the ascending channel, increasing the likelihood of a rejection.
2. Bearish Price Path:
The projected path shows a potential series of lower highs and lower lows, implying a correction or short-term downtrend.
The drop targets the channel support line near 1.14734 and potentially as low as the horizontal key level at 1.14578.
3. Key Support Level:
Around 1.14578, marked by historical price reactions and aligned with EMA 200, this is a logical bearish target.
4. Measured Move:
Vertical measurement suggests a -1.58% downside move, reflecting the size of the previous bullish rally that may now unwind.
---
🎯 Trading Idea:
Setup: Bearish reversal from resistance
Entry: Near 1.1600–1.1620 zone after confirmation (e.g., bearish candlestick or divergence)
Target: 1.14734 first, 1.14578 as extended target
Stop-Loss: Above resistance (1.1630+)
---
🛑 Risk Factors & Considerations:
Watch for fundamental events (indicated by icons), including economic releases, that can cause volatility.
RSI divergence or weakening volume would further confirm the bearish bias.
If price breaks above the resistance zone, this analysis would be invalidated and a bullish breakout may occur.
---
✅ Summary:
This is a bearish pullback setup following a resistance rejection near the top of a rising channel. The idea anticipates a drop toward key support levels, especially around 1.14734–1.14578. Risk is defined by the invalidation zone above resistance.
Feedback My idea like and comment's 🙏
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Join My Official Channel Link
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
t.me/goldprotreader
Join My Public Channel Link
t.me/goldprotreader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.