Breakdown Continuation or Reversal Setup in the Making?Euro/US DollarFX:EURUSDXauMasterNetworkHello traders! Here’s a clear technical breakdown of EURUSD (1H) based on the current chart structure. EURUSD remains in a broader bearish structure, defined by lower highs and consistent downside pressure since the rejection from the recent highs. After a sharp impulsive drop, price attempted a recovery but failed to reclaim key structure levels, transitioning into a descending corrective channel beneath a well-respected trendline. Recent price action shows weak bullish responses and overlapping candles, suggesting that buying momentum is corrective rather than impulsive. Sellers continue to defend rallies, keeping the short-term structure tilted to the downside. 🟦 SUPPLY & DEMAND – KEY ZONES Major Resistance / Supply Zone: The 1.1658–1.1665 area acts as a strong supply zone, aligned with: - Previous structure support turned resistance - Descending trendline confluence - EMA resistance overhead This zone continues to cap upside attempts and confirms seller dominance on pullbacks. Primary Demand Zone: The 1.1620–1.1623 region is the key demand zone currently being approached. This area marks prior accumulation and represents the last meaningful support before a deeper bearish continuation. Higher-Timeframe Resistance: Above, the 1.1685–1.1700 zone remains a major resistance ceiling and would only come into play if structure shifts bullish. 🎯 CURRENT MARKET POSITION - Currently, EURUSD is trading just above the demand zone, placing price at a critical inflection point. The market is compressed between descending resistance and horizontal demand, a setup that typically precedes directional expansion. - Momentum remains bearish, but downside follow-through is slowing as price reaches demand. 🧠 MY SCENARIO - As long as EURUSD holds above the 1.1620 demand zone, there is room for a technical bounce, potentially leading to a corrective push back toward the 1.1658–1.1665 supply zone. However, unless price can reclaim and hold above that supply with strong bullish acceptance, any bounce should be treated as corrective within a bearish trend. - If price breaks and accepts below the 1.1620 demand zone, bearish continuation is likely, opening the door for a deeper move lower as sellers regain full control. - For now, EURUSD is testing demand within a bearish structure, not confirming a reversal yet. ⚠️ RISK NOTE Decision zones demand patience. Wait for confirmation at demand or rejection from supply, avoid premature bias, and always manage your risk.