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Trend Context
The chart shows a series of lower highs, confirming a downtrend (highlighted by the descending trendline).
Recent price is rallying upward, but it’s moving into heavy resistance zones.
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Key Zones
1. Resistance Zones
1.1720 – 1.1770: Strong supply zone aligning with the descending trendline. Price may struggle to break through here.
1.1780 – 1.1830: Another higher resistance block where previous sellers entered.
2. Support Zones
1.1565 – 1.1600: Minor demand area; price previously bounced here.
1.1405 – 1.1450: Major demand zone and liquidity pool (swing low).
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Liquidity & Stop Hunts
Upside Liquidity: Equal highs around 1.1770 – 1.1780. Price could push above this level to grab stops before resuming downtrend.
Downside Liquidity: Clean lows around 1.1560 and deeper at 1.1405, which are prime stop-hunt levels for institutions.
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Possible Scenarios
1. Bearish Scenario (Favored by Trendline)
Price rejects from the 1.1720 – 1.1770 zone.
Downward move toward 1.1560, possibly extending to 1.1405 liquidity.
2. Bullish Scenario (If Breakout Occurs)
A strong breakout and close above 1.1780 could invalidate the descending trendline.
Next target would be 1.1830 – 1.1850 zone.
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✅ Bias: Trend still favors the downside unless EUR/USD breaks and closes strongly above 1.1780.
📌 Best plays: Look for sell setups at resistance zones, with potential targets at 1.1560 and 1.1405
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