EUR/USD) bearish chochy Trend Read The caption

225
SMC trading point update



Technical analysis of EUR/USD (Euro vs. U.S. Dollar) on the 4-hour timeframe. Here’s the breakdown


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Technical Breakdown:

1. Market Structure Shift (CHOCH):

The chart highlights a Change of Character (CHOCH), signaling a bearish reversal after a previous uptrend.

This is confirmed by lower highs and lower lows forming after the CHOCH point.


2. New Resistance Zone:

The previous support (yellow box) has now turned into a new resistance level around 1.16400–1.16700.

Price has rejected this area after the breakdown, validating the resistance flip.


3. 200 EMA Breakdown:

Price is now trading below the 200 EMA (1.15928), which reinforces bearish sentiment.

The EMA may act as dynamic resistance on any pullbacks.


4. Target Zone:

The projected target is the key support zone around 1.14582, where price consolidated before the last major bullish move.

This level has historical significance and aligns with a clean support demand zone.


5. RSI Indicator:

RSI is not yet oversold, sitting in a neutral-to-bearish range, indicating further downside potential.



Mr SMC Trading point
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Trade Idea Summary:

Bias: Bearish

Entry Zone: On breakdown and rejection from the new resistance area (~1.16400–1.16700)

Target Zone: 1.14582 (key support)

Invalidation: A break and close above the resistance zone

Confluence: CHOCH confirmation + support-turned-resistance + 200 EMA breakdown



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