EUR/USD – Sharp Selloff Finds Temporary SupportEuro/US DollarFX:EURUSDHenrybillionEUR/USD – Sharp Selloff Finds Temporary Support, Potential Recovery Toward Key H1 Resistance EUR/USD has completed a strong bearish leg, driving price into a short-term support area where a technical rebound is now expected. The chart structure suggests a potential corrective rally toward the previous broken support, which now acts as resistance at 1.1585 – 1.1590. This aligns with the projected bullish zig-zag pattern in your chart: rejection → drop → liquidity sweep → rebound. Technical Overview 1. Market Structure Price has formed a new lower low, confirming ongoing bearish structure. The current bounce shows signs of a bullish relief move, not yet a trend reversal. The most important test is the retest of 1.1585 – 1.1590. 2. Key Horizontal Levels Support Zone: 1.1500 – 1.1515 This is where the current bounce is forming. Immediate Resistance: 1.1585 – 1.1590 This is the level price is likely to retest before sellers return. Major Resistance: 1.1655 – 1.1665 The strong upper supply zone marked on your chart. 3. Trend Bias Although price is rebounding, the broader trend remains bearish. The upside scenario is a correction, not a confirmed trend reversal. 4. Fibonacci & EMA Confluence (Implied) The corrective target aligns with the 38.2%–50% Fibonacci zone of the recent drop. Price is currently trading below the EMA cluster on H1, meaning buyers still lack strong momentum. 5. RSI Indicator RSI has reached oversold levels and is now pointing upward, supporting the short-term rebound scenario. Trading Scenarios Scenario 1 – Buy the Short-Term Rebound (Higher-risk countertrend setup) Entry: 1.1505 – 1.1515 TP: TP1: 1.1560 TP2: 1.1585 – 1.1590 SL: Below 1.1485 This matches the upward structure drawn on your chart. Scenario 2 – Sell the Retest (Primary Setup) If price reaches the 1.1585 – 1.1590 resistance zone: Look for rejection signals to rejoin the broader downtrend. SL: Above 1.1605 TP: 1.1520 → 1.1500 This is the highest-probability setup given the current trend. Scenario 3 – Bullish Breakout (Low Probability) Only valid if price breaks and closes above 1.1600 with strong momentum. In that case, price may target 1.1655 – 1.1665. Market Outlook EUR/USD is entering a corrective phase after a sharp decline. The most likely scenario is a rebound toward 1.1585 – 1.1590, followed by renewed selling pressure. If you find this analysis useful, remember to follow along for more strategic insights.