- May 5, 2026
- Posted by: EWGFX
- Category: Technical analysis
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EUR/USD is sitting at a critical structure point, and the next move could be aggressive
Market Structure Breakdown:
- Price has been forming a rising trendline (short-term bullish structure)
- Currently testing a key horizontal support (~1.1690 zone)
- Weak bullish momentum + repeated rejections from highs
This suggests buyers are losing strength, and a breakdown could trigger a sharp sell-off.
Trade Setup (Sell Bias):
- Entry Zone: 1.1680 – 1.1700 (current support test)
- Stop Loss: Above 1.1800 (above resistance / structure high)
- Take Profit Targets:
- TP1: 1.1640 (minor support)
- TP2: 1.1520 (major support / liquidity zone)
Why This Setup is Strong:
- Support + trendline = key decision zone
- Multiple rejections = weak buyers
- Potential trendline break = momentum shift
- Clean risk-to-reward ratio
Invalidation Scenario:
- Strong bullish bounce from support
- Break above 1.1800 resistance
- Continuation of higher highs
Smart Money Insight:
This looks like a possible liquidity grab before continuation down. The real move often starts after support breaks — not before.
Summary:
If EURUSD breaks below this zone, we could see a strong move toward 1.1640 and possibly 1.1520. This is a high-probability breakdown setup — wait for confirmation.