Two-scenario analysis for EUR/USD based on current price action (1 Viewer)

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 Two-scenario analysis for EUR/USD based on current price action (1 Viewer)

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RaKotU

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two-scenario analysis for EUR/USD based on current price action:


Current Context

  • EUR/USD is trading around 1.1715–1.1725.
  • Recently faced resistance at 1.1740–1.1755, showing selling pressure.
  • Immediate support is at 1.1690–1.1720, which will dictate the next move.

Scenario 1 — Bearish Continuation

Trigger: Break below 1.1690 support with strong momentum.
Implications:

  • Short-term sellers gain control; market moves lower.
  • Could trigger stop-losses and accelerate downside.
Targets:

  1. 1.1660–1.1670 (next support cluster)
  2. 1.1620–1.1630 (secondary support)
Technical Signals Supporting Bearish Case:

  • RSI trending lower (~48)
  • MACD bearish crossover forming
  • Rejection from key resistance at 1.1740

Scenario 2 — Bullish Rebound

Trigger: Price holds 1.1690–1.1720 support and shows bullish reversal signals (e.g., hammer, bullish engulfing).
Implications:

  • Buyers regain control; short-term rebound toward prior resistance.
  • Could retest 1.1740–1.1755 seller zone.
Targets:

  1. 1.1740–1.1755 (resistance/seller zone)
  2. 1.1780–1.1800 (next resistance if breakout occurs)
Technical Signals Supporting Bullish Case:

  • Oversold RSI near support
  • MACD flattening and turning up
  • Price near demand zone

Key Levels to Watch

LevelRole
1.1690Immediate support
1.1740–1.1755Key resistance / seller zone
1.1660Next support if bearish continuation
1.1780–1.1800Next target if bullish breakout

Summary:

  • Bearish scenario: Break below 1.1690 → downside to 1.1660–1.1630.
  • Bullish scenario: Hold above 1.1690 → rebound to 1.1740–1.1755, possible breakout to 1.1780–1.1800.

 
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