Today's EURUSD Analysis : Channel Break : EURUSD Eyes 1.19056Chart Overview:
The EURUSD pair has broken out of a well-defined descending channel, indicating a potential shift in momentum. Price has now approached a critical Central Zone that acts as a probable reaction or reversal area. This zone lies between minor and major supply levels.
🔍 Key Technical Highlights:
Descending Channel:
Price was previously trapped in a bearish channel. This channel was respected with multiple touches on both upper and lower bounds, showing controlled bearish structure.
Breakout & Momentum Shift:
The recent bullish breakout above the channel suggests buyers are gaining control. A strong candle has closed outside the structure, confirming the breakout.
Major & Minor Zones:
Two levels are marked just above the breakout:
Minor Resistance: First possible supply zone where price may pause.
Major Resistance: A stronger historical level and the top of the Central Zone.
Central Zone Reaction Area (CZRA):
This is the MMC's focus area — price is expected to react here. Either we see a rejection that could confirm a reversal setup, or price slices through, opening the door to the Next Reversal Zone around 1.19056.
📌 Strategic Condition (MMC Logic):
Condition 1:
If price respects the Central Zone and shows bearish signs (e.g., wick rejections, engulfing candles, divergence), we expect a strong pullback or reversal toward previous demand levels.
If Condition 1 Fails:
The annotation clearly states: “If this condition not apply, it will go 100%.”
Meaning: If price breaks and holds above the Central Zone, it confirms bullish strength, targeting 1.19056 — the Next Reversal Zone (NRZ).
📊 Trader's Mindset (MMC Application):
This setup is a classic MMC structure trap-break scenario:
The channel traps sellers,
The breakout invites buyers,
And the Central Zone becomes the battlefield.
Wait for confirmation, not assumption. Whether it's rejection or breakout, risk management and reaction-based trading are key.
