EURUSD Breakdown Bearish Trend Continues or Demand Zone Reversal🔍 Chart Breakdown: EUR/USD (30-min TF)
Trend Overview:
Previous Trend: Bullish channel structure (highlighted in blue).
Current Momentum: Strong bearish breakdown following a clear range phase.
The chart shifted from consolidation → breakdown → aggressive bearish continuation.
🧱 Key Technical Highlights:
1. Bearish Breakout:
Price broke below the ascending trendline and exited the ranging box, confirming a bearish shift.
Multiple Breakdown Retests (highlighted with red arrows) confirming structure failures and validating resistance zones.
2. Range Zone (Distribution Phase):
Price moved sideways within the green rectangle (“RANGE”), indicating accumulation/distribution before the selloff.
The breakdown from this range confirmed bearish momentum.
3. Demand Zone Test (Now in Play):
Price is approaching/hovering around a demand zone (green box) marked as a critical support.
Buyers may react here, offering two key scenarios:
Bounce back to retest resistance around 1.1600 (highlighted).
Breakdown below demand, leading to further decline toward next major support zones (1.15354 and 1.15040).
4. Price Reaction Zones:
🔴 Resistance zones are clearly marked where breakdown retests occurred.
🟢 Demand zone with bounce-or-break logic provides directional bias.
🧭 Potential Scenarios (Marked on Chart):
✅ Bullish Case:
If demand zone holds, expect:
A corrective rally toward 1.1600–1.1620.
Watch for rejection signals here (could be ideal for re-entering shorts).
❌ Bearish Case:
If breakdown below green demand zone occurs, targets:
1.1535 (local structure support)
1.1504 (next confluence level; possible long-term bounce area)
📈 Indicators:
Ichimoku Cloud: Price is well below the cloud, confirming bearish control.
Structure: Lower highs & lower lows = confirmed bearish trend.
