EURUSD Short: Descending Channel Holds Strong, Eyes On 1.1680

May 3

Hello traders! Here’s my technical outlook based on the current EURUSD (3H) chart structure. EURUSD previously traded below a descending supply line. After a breakout above this structure, price entered a short consolidation phase (range), but the upside momentum was limited.

Currently, EURUSD is trading below the 1.1770 supply zone, which acts as resistance, while moving lower within the descending channel. A recent fake breakout above resistance followed by a sharp rejection indicates strong selling interest.

As long as EURUSD remains below the 1.1770 resistance and respects the descending channel, the bearish scenario remains valid. A continuation to the downside could push price toward the 1.1680 demand zone (TP1). Manage your risk!

May 4

Trade active

We can see that there was still a small correction before continuing the downward movement. I expect another similar correction and after that we will reach our target!

May 5

Trade closed: target reached

As we expected, the euro continues to move within the descending channel at the moment. Our goal has been achieved!