Educational EUR/USD Chart Breakdown – Price Action at Key Levels
This EUR/USD (1-hour) chart provides a great example of how support and resistance zones, combined with price action and indicators like Bollinger Bands, can help anticipate market moves.
🔹 Resistance Zone Tested:
The pair recently approached the 1.17500–1.17800 resistance zone. This level had previously acted as a supply zone, and price once again showed rejection here, indicating selling pressure.
🔹 Bollinger Band Overextension:
Notice how the price extended beyond the upper Bollinger Band—this often signals that the market is overbought in the short term, leading to a potential reversal or correction.
🔹 Bearish Reaction & Target:
After rejection from resistance, the chart outlines a bearish move with a target at 1.16097. This level lies just above the next strong support zone (1.15500–1.16100), offering a realistic area for price to stabilize if the downtrend continues.
🔹 What to Learn:
Support & Resistance: Prices often react at key zones; previous resistance can turn into support and vice versa.
Confluence Tools: Use indicators like Bollinger Bands with price structure to increase confidence.
Target Planning: Identify likely reaction zones for risk management and profit-taking.
📚 Summary
This setup is a clean example of trading within a range and using technical confluence to plan entries and exits. If price breaks below 1.17130 with strong momentum, the probability increases for the market to reach the 1.16097 target.
This EUR/USD (1-hour) chart provides a great example of how support and resistance zones, combined with price action and indicators like Bollinger Bands, can help anticipate market moves.
🔹 Resistance Zone Tested:
The pair recently approached the 1.17500–1.17800 resistance zone. This level had previously acted as a supply zone, and price once again showed rejection here, indicating selling pressure.
🔹 Bollinger Band Overextension:
Notice how the price extended beyond the upper Bollinger Band—this often signals that the market is overbought in the short term, leading to a potential reversal or correction.
🔹 Bearish Reaction & Target:
After rejection from resistance, the chart outlines a bearish move with a target at 1.16097. This level lies just above the next strong support zone (1.15500–1.16100), offering a realistic area for price to stabilize if the downtrend continues.
🔹 What to Learn:
Support & Resistance: Prices often react at key zones; previous resistance can turn into support and vice versa.
Confluence Tools: Use indicators like Bollinger Bands with price structure to increase confidence.
Target Planning: Identify likely reaction zones for risk management and profit-taking.
📚 Summary
This setup is a clean example of trading within a range and using technical confluence to plan entries and exits. If price breaks below 1.17130 with strong momentum, the probability increases for the market to reach the 1.16097 target.
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Market Analyst | XAU/USD Focused
Educational Content & Technical Breakdowns
Premium VIP Signals & Market Insights
Forex Mentorship & Live trades & strategies shared daily
Join our Telegram t.me/Mentor_Michael033
Educational Content & Technical Breakdowns
Premium VIP Signals & Market Insights
Forex Mentorship & Live trades & strategies shared daily
Join our Telegram t.me/Mentor_Michael033
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.