EURUSD Short: Trend Continuation After Breakdown

[Antony Bishop]

Hello, traders! The prior market structure for EURUSD has shifted to a bearish bias following a major reversal from the supply 2 level near 1.1835. The failure of a prior ascending channel initiated a new downtrend, which has been guiding the price auction lower through a series of complex breakdowns and consolidations.

Currently, the price action has shown significant weakness by breaking below the key horizontal support at the 1.1580 level. After multiple failed attempts by buyers to hold this level, sellers have successfully pushed the price below this critical area. The auction is now in a corrective pullback, approaching this broken support level from below for a classic retest.

My scenario for the development of events is a continuation of the downtrend. I believe this rally is a corrective retest that will fail upon reaching the 1.1580 level, which should now act as strong resistance. In my opinion, a confirmed rejection from this area will validate the bearish control and trigger the next impulsive move down. The take-profit is therefore set at 1.1510. Manage your risk.