Today's EURUSD Analysis : Channel Break : EURUSD Eyes 1.19056

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Today's EURUSD Analysis : Channel Break : EURUSD Eyes 1.19056Euro/US DollarFX:EURUSDGoldMasterTradesChart Overview: The EURUSD pair has broken out of a well-defined descending channel, indicating a potential shift in momentum. Price has now approached a critical Central Zone that acts as a probable reaction or reversal area. This zone lies between minor and major supply levels. 🔍 Key Technical Highlights: Descending Channel: Price was previously trapped in a bearish channel. This channel was respected with multiple touches on both upper and lower bounds, showing controlled bearish structure. Breakout & Momentum Shift: The recent bullish breakout above the channel suggests buyers are gaining control. A strong candle has closed outside the structure, confirming the breakout. Major & Minor Zones: Two levels are marked just above the breakout: Minor Resistance: First possible supply zone where price may pause. Major Resistance: A stronger historical level and the top of the Central Zone. Central Zone Reaction Area (CZRA): This is the MMC's focus area — price is expected to react here. Either we see a rejection that could confirm a reversal setup, or price slices through, opening the door to the Next Reversal Zone around 1.19056. 📌 Strategic Condition (MMC Logic): Condition 1: If price respects the Central Zone and shows bearish signs (e.g., wick rejections, engulfing candles, divergence), we expect a strong pullback or reversal toward previous demand levels. If Condition 1 Fails: The annotation clearly states: “If this condition not apply, it will go 100%.” Meaning: If price breaks and holds above the Central Zone, it confirms bullish strength, targeting 1.19056 — the Next Reversal Zone (NRZ). 📊 Trader's Mindset (MMC Application): This setup is a classic MMC structure trap-break scenario: The channel traps sellers, The breakout invites buyers, And the Central Zone becomes the battlefield. Wait for confirmation, not assumption. Whether it's rejection or breakout, risk management and reaction-based trading are key.