Bearish Setup on the Horizon: EURUSD Eyes Lower Levels
Hey Traders,
EURUSD recently broke below two major support levels, zones which have now become resistance levels and are yet to be retested. With the current setup, I anticipate a potential rejection at these levels, signalling a possible downward move.
Current Market Conditions:
Key Resistance: EURUSD is approaching the 1.11114 resistance level, which aligns with past price action and is likely to act as a strong barrier.
Bearish Setup: If the pair fails to break above this resistance, we could see a resumption of the downtrend.
Fundamental Analysis/Outlook:
Recent dovish comments from ECB officials suggest that the central bank is open to adjusting its policy in light of economic slowdown concerns, which might weigh on the euro. Additionally, broader market sentiment has favored the dollar amid expectations of interest rate cuts by the Fed, putting further pressure on the euro.
Targets:
TP1: 1.10374
TP2: 1.09770
Risk Management:
Stop-Loss: Consider placing a stop-loss above the resistance at 1.11576 to protect against unexpected bullish breakouts.
Conclusion:
EURUSD is at a critical resistance level, with a bearish setup that could lead to a downside move. Watch the price action closely for signs of rejection at 1.11114.
I would love to hear your thoughts in the comment section, and please hit boost and follow for more ideas. Thank you, and profitable trading to you all!
Trading Insight: "Success in trading isn’t about being right; it’s about managing losses and riding the winners."
EURUSD recently broke below two major support levels, zones which have now become resistance levels and are yet to be retested. With the current setup, I anticipate a potential rejection at these levels, signalling a possible downward move.Current Market Conditions:
Key Resistance: EURUSD is approaching the 1.11114 resistance level, which aligns with past price action and is likely to act as a strong barrier.
Bearish Setup: If the pair fails to break above this resistance, we could see a resumption of the downtrend.
Fundamental Analysis/Outlook:
Recent dovish comments from ECB officials suggest that the central bank is open to adjusting its policy in light of economic slowdown concerns, which might weigh on the euro. Additionally, broader market sentiment has favored the dollar amid expectations of interest rate cuts by the Fed, putting further pressure on the euro.
Targets:
TP1: 1.10374
TP2: 1.09770
Risk Management:
Stop-Loss: Consider placing a stop-loss above the resistance at 1.11576 to protect against unexpected bullish breakouts.
Conclusion:
EURUSD is at a critical resistance level, with a bearish setup that could lead to a downside move. Watch the price action closely for signs of rejection at 1.11114.
I would love to hear your thoughts in the comment section, and please hit boost and follow for more ideas. Thank you, and profitable trading to you all!
Trading Insight: "Success in trading isn’t about being right; it’s about managing losses and riding the winners."
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