EUR/USD) Bearish Trend Read The caption

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SMC Trading point update



Technical analysis EUR/USD on the 4-hour timeframe, highlighting a structure shift, supply zone rejection, and a move toward a lower support target.


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Technical Breakdown:

1. Market Structure:

A clear Change of Character (CHOCH) occurred after the price broke below the recent higher low structure — signaling a bearish trend reversal.

Price made a lower high after retesting the supply zone (yellow), confirming bearish momentum.



2. Supply & Demand Zones:

Supply Zone (Resistance): Around 1.1598 – previously a demand zone, now acting as a rejection zone.

Target Support Zone: 1.12099 – marked as a key level for potential bounce or consolidation.



3. EMA (200):

The price is trading below the 200 EMA, reinforcing the bearish bias.

The EMA is also curving downward — aligning with the direction of the trend.



4. Projected Price Path:

The chart outlines a bearish stair-step move with lower highs and lower lows.

Targeting a full move toward the support zone at 1.12099.



5. RSI (14):

Currently hovering around 50, showing neutral momentum.

No divergence, but RSI is below its moving average (bearish crossover) and can support further downside.





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Trade Idea Summary:

Bias: Bearish

Confirmation: Price broke below structure → CHOCH confirmed → Rejection from supply zone

Entry Area: Around 1.1550–1.1580 (ideally after a lower high forms)

Target Zone:

TP1: 1.1400

TP2: 1.12099 (major support zone)


Invalidation: Price closes and holds above 1.1600 (invalidates bearish bias)



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Key Insights:

This is a Smart Money Concept (SMC)-based setup focusing on structure breaks, supply rejections, and order flow.

Ideal for swing traders aiming to capture the next major leg down.




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