EUR/USD Analysis – Potential Reversal Zone

Overview: This analysis focuses on the EUR/USD 1-hour chart, which is showing a strong downtrend within a descending channel. Price has reached a critical support area and is consolidating within a potential reversal zone.

Technical Analysis:

Descending Channel: The pair is trading within a well-defined downward channel, indicating sustained bearish pressure.
Support Zone: Price is consolidating within the shaded support zone, suggesting a possible pause in selling momentum.
Possible Scenarios:
Bullish Breakout: A breakout above the channel resistance could signal a reversal, with potential targets at the next resistance levels (highlighted by arrows).
Continuation: If the support zone fails, further bearish movement could extend towards the lower levels near 1.0600.
Trade Plan:

Bullish Entry: Look for a breakout and retest of the channel's upper boundary for confirmation of a trend reversal.
Bearish Continuation: Monitor for rejection within the consolidation zone to confirm continued selling pressure.
Key Levels:

Support: 1.0620 - 1.0640
Resistance: 1.0675, 1.0700
Disclaimer: This analysis is for educational purposes only. Always trade with a proper risk management strategy.