EUR/USD) Bearish breakout analysis Read The ChaptianSMC trading point update
Technical analysis of EUR/USD on the 1-hour timeframe, likely projecting a short-term downward move. Here’s a breakdown of the technical analysis and the trade idea:
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Key Elements in the Chart:
1. Bearish Rejection from Resistance:
Price was rejected twice near the 1.14400 resistance zone (highlighted in yellow).
The red arrows mark double rejection at this level, suggesting strong selling pressure.
2. Break of Rising Channel:
Price was previously moving inside a rising channel.
Recent price action shows a clear breakdown below the lower trendline, indicating trend reversal.
3. 200 EMA (Exponential Moving Average):
EMA is around 1.13188 and price is below it, reinforcing bearish momentum.
EMA also acted as dynamic resistance after the channel breakdown.
4. Target Zone – Support Area:
The yellow support zone around 1.10911 is the target point.
This was a previous area of price consolidation and demand.
5. RSI (Relative Strength Index):
RSI is near 51, hovering around the neutral zone.
Not strongly bearish yet, but room remains to drop toward oversold if the downtrend continues.
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Trade Idea Summary:
Bias: Bearish
Scenario:
Price has broken a key structure and is retesting the breakdown.
Expect continuation toward the 1.10900 support zone.
Entry Zone:
Near current price (~1.13400–1.13500), ideally on a retest of the EMA or broken trendline.
Target:
1.10911 (highlighted support level).
Stop-Loss (Invalidation):
A break and close back above the resistance zone (~1.14000–1.14200).
Mr SMC Trading point
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Conclusion:
This is a high-probability bearish setup following a structure break, retest, and double top rejection. It targets a move back down toward a previously strong support level, with a favorable risk-to-reward ratio.
Pales support boost 🚀 analysis follow)
