EUR/USD Outlook – Potential Short SetupsHi everyone,
In today’s post, let’s break down the current market structure and potential opportunities in the EUR/USD pair.
🔍 Market Context
After nearly a month of consolidation, EUR/USD appears to have stalled around the previous weekly swing highs . Despite several attempts to hold above this level, the price eventually broke down, signalling a shift in structure on the 4-hour (4H) timeframe.
This short-term breakdown could be an early sign of a larger structural shift on the daily chart , and it’s something I’m keeping a close eye on.
🧭 Key Levels & Price Behaviour
At the moment, price action is bouncing from a demand zone , which might provide a short-lived relief rally . However, this bounce may only be temporary.
In my humble opinion, bullish momentum is fading , and we could be entering a trap zone for late buyers . I’m watching the 1.132–1.138 region , just above the short-term downtrend line, as a potential resistance zone and an ideal area to consider shorts.
🎯 Trade Ideas
I’ve marked two trade setups on the chart, catering to different risk profiles:
1. Aggressive Trade – For traders willing to enter closer to resistance with tighter stop losses.
2. Conservative Trade – For those who prefer more confirmation before entry.
You can treat these setups independently or combine them into a single strategy depending on your trading style and risk tolerance.
⚠️ Disclaimer
This post is purely for educational purposes . I am not a financial advisor , and nothing here should be taken as financial advice. Always consult your financial advisor before making any investment or trading decisions.
