Why EUR/USD Dropped: A Step-by-Step Breakdown for LearnersEUR/USDOANDA:EURUSDMentor_Michael03📉 Overview: The EUR/USD has recently approached a key resistance zone near 1.17726, showing signs of a potential rejection after a bullish rally. The price is currently hovering around 1.17468, forming a short-term bearish setup that could lead to a retracement or reversal. ⸻ ⚙ Key Technical Zones: •🔼 Resistance: 1.17500 – 1.17726 Price was strongly rejected after testing this area. This level has historically acted as a supply zone. •🔽 Support: 1.15500 – 1.16000 This is a historically significant demand zone, where price previously consolidated and reversed. •🎯 Target Zone: 1.16308 Marked as a potential take-profit level based on prior price structure and volume profile imbalance. ⸻ 🧠 Indicators & Tools: •Bollinger Bands: Price touched the upper band in overbought conditions, suggesting a possible mean reversion. •Volume Profile (VRVP): Indicates declining volume near resistance, pointing to weak buyer momentum. •Price Action: Bearish engulfing candle and strong rejection wick at resistance, confirming selling pressure. ⸻ 🧭 Market Bias: 📌 Short-Term Bearish A short opportunity is forming based on the rejection from resistance and overextension of price. ⸻ 🧩 Possible Scenario: 1.Breakdown below 1.17061 (mid-level support) could trigger acceleration to the downside. 2.1.16500 and 1.16308 are ideal short targets before reevaluation for continuation or bounce. ⸻ 🛑 Risk Management Tips: •Consider SL above 1.17800 (previous high). •Monitor for confirmation before entry (e.g., bearish candle close below 1.17000). •Adjust size and risk-reward ratio appropriately.