EUR/USD) Bearish breakout analysis Read The Chaptian

SMC 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.



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