Educational EUR/USD Chart Breakdown – Price Action at Key Levels

Educational EUR/USD Chart Breakdown – Price Action at Key Levels
This EUR/USD (1-hour) chart provides a great example of how support and resistance zones, combined with price action and indicators like Bollinger Bands, can help anticipate market moves.

🔹 Resistance Zone Tested:
The pair recently approached the 1.17500–1.17800 resistance zone. This level had previously acted as a supply zone, and price once again showed rejection here, indicating selling pressure.

🔹 Bollinger Band Overextension:
Notice how the price extended beyond the upper Bollinger Band—this often signals that the market is overbought in the short term, leading to a potential reversal or correction.

🔹 Bearish Reaction & Target:
After rejection from resistance, the chart outlines a bearish move with a target at 1.16097. This level lies just above the next strong support zone (1.15500–1.16100), offering a realistic area for price to stabilize if the downtrend continues.

🔹 What to Learn:
Support & Resistance: Prices often react at key zones; previous resistance can turn into support and vice versa.

Confluence Tools: Use indicators like Bollinger Bands with price structure to increase confidence.

Target Planning: Identify likely reaction zones for risk management and profit-taking.

📚 Summary
This setup is a clean example of trading within a range and using technical confluence to plan entries and exits. If price breaks below 1.17130 with strong momentum, the probability increases for the market to reach the 1.16097 target.