EURUSD: Rejection from Resistance Targets Lower Support Levels

May 5

Hello everyone, here is my breakdown of the current EURUSD setup.

Market Analysis

EURUSD previously traded inside a downward channel, confirming bearish momentum. After breaking lower, price formed a range near support and later reversed through an inverse head and shoulders pattern, triggering a short-term recovery.

Currently, price is trading below the 1.1750 resistance zone inside a new descending channel, while holding above the 1.1630 support zone. Recent rejection from resistance confirms renewed selling pressure.

My Scenario & Strategy

As long as EURUSD remains below the 1.1750 resistance and respects the descending channel, the bearish scenario remains valid. A rejection from this area could push price toward the 1.1630 support (TP1).

However, if price breaks above 1.1750 and exits the descending channel, the bearish outlook would be invalidated, opening the path for a potential upward move.

That’s the setup I’m tracking. Thank you for your attention, and always manage your risk.

May 6

Trade active

Now we see an impulsive movement that was triggered by the latest news. However, the price is still at the top of the channel and a reversal is quite possible. We will wait for confirmation of the breakout!

May 8

Trade closed manually

We can see that there are changes in the market sentiment and the price is trying to break out of the descending channel!