Bearish Setup on EUR/USD After Rejection at Key Resistance

Trading Idea on 1-Hour Chart (H1):

The EUR/USD pair is showing signs of a potential bearish continuation after testing a key resistance zone around 1.0540 - 1.0544, which aligns with a previously broken downward trendline.

The market structure on the H1 timeframe indicates lower highs, suggesting sellers are regaining control.


Technical Confirmation:

Key Resistance Zone:
The 1.0540 - 1.0544 area acts as a significant rejection point where bullish momentum appears to be weakening.

Break-Retest Pattern:
The price broke below a descending trendline and is now retesting the zone, showing clear signs of rejection.

RSI Indicator:
The RSI is currently near 60, reflecting recent bullish movement but remaining below overbought levels, which signals potential exhaustion in the upward move.


Technical Confirmation:

Key Resistance Zone:
The 1.0540 - 1.0544 area acts as a significant rejection point where bullish momentum appears to be weakening.

Break-Retest Pattern:
The price broke below a descending trendline and is now retesting the zone, showing clear signs of rejection.

RSI Indicator:
The RSI is currently near 60, reflecting recent bullish movement but remaining below overbought levels, which signals potential exhaustion in the upward move.



Summary:
This idea is based on a bearish continuation pattern following rejection at a key resistance zone, supported by trendline retest and weakening bullish momentum. Confirmation on lower timeframes (e.g., M15) is recommended before entry.