EURUSD | Bearish Breakdown Continuation & Downside Potential Set

Euro / U.S. Dollar Short 11 hours ago 1 Grab this chart Grab this chart 2 2 68 EURUSD | Bearish Breakdown Continuation & Downside Potential Setup Fundamental EURUSD is trading in a sensitive environment as markets react to developments in the U.S. Treasury market and shifting interest-rate expectations. The expanded U.S. Treasury buyback program takes effect on September 9, making bond-market developments an important driver for the U.S. dollar and Treasury yields. However, the immediate currency reaction remains uncertain, as market conditions can change depending on how yields respond. The euro is also receiving support from expectations surrounding the upcoming ECB decision, with markets closely monitoring the policy outlook and guidance. This creates the potential for increased volatility in EURUSD around major bond and central-bank development. Technical Analysis EURUSD has approached an important resistance area between 1.16500 and 1.16600. The chart shows price testing higher levels where a rejection could potentially keep the broader bearish scenario in focus. As long as price remains below the resistance zone and fails to establish sustained bullish acceptance above it, sellers may continue to target lower liquidity and support areas. A break below the nearby support structure could increase the probability of a move toward the downside target around 1.15600. SMC View From a Smart Money Concepts perspective, the 1.16500–1.16600 area represents an important zone where buy-side liquidity and previous rejection could attract market attention. The current recovery may potentially act as a liquidity sweep into the upper resistance area before the market determines its next directional move. A bearish rejection and renewed downside displacement could shift attention toward sell-side liquidity resting below 1.16000 and 1.15800. Key Levels to Watch Resistance: • 1.16500 • 1.16600 Support: • 1.16000 • 1.15800 Bearish Target: • 1.15600 Invalidation: • 1.16800 Trading Scenario Bearish scenario: If EURUSD rejects the 1.16500–1.16600 resistance zone and remains below it, the downside structure may remain in focus. A sustained move below 1.16000 could increase the probability of price testing 1.15800, followed by the 1.15600 liquidity target. Alternative scenario: A sustained break and acceptance above the resistance zone would weaken the bearish scenario. A move above 1.16800 would invalidate this particular bearish setup and require a reassessment of market structure. Professional Insights The key focus is not simply whether price touches resistance, but how it reacts there. Traders may watch for confirmation through rejection candles, market structure shifts, momentum, and sustained price acceptance before forming a directional bias. With Treasury-market developments and ECB expectations influencing EURUSD, volatility may increase around major announcements. This Move Is Supported By • Price approaching a key resistance and rejection zone • Potential buy-side liquidity resting above recent highs • Downside liquidity below the 1.16000 and 1.15800 support areas • Bearish continuation potential if resistance remains respected • Increased market sensitivity to Treasury yields and central-bank expectations Risk Management Risk management remains essential, especially during periods of major bond-market and central-bank developments. Consider waiting for confirmation, defining invalidation before entering a position, and using position sizing appropriate to individual risk tolerance. Disclaimer This analysis is shared for educational and informational purposes only and does not constitute financial advice or a recommendation to buy or sell any financial instrument. Market conditions can change rapidly, and traders should conduct their own research and manage risk accordingly. YOUSUF-ANALYTICS Follow Following Join me for the more charts, and market updates t.me/GoldSignalExpert_47 Join Telegram for daily market insights, t.me/GoldSignalExpert_47 Also on : Chart Patterns Technical Indicators Trend Analysis Disclaimer The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use . Chart Patterns Technical Indicators Trend Analysis YOUSUF-ANALYTICS Follow Following Join me for the more charts, and market updates t.me/GoldSignalExpert_47 Join Telegram for daily market insights, t.me/GoldSignalExpert_47 Also on : Disclaimer The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use .