The EUR/USD pair has reached a significant resistance zone near 1.14000, where sellers previously showed strong activity. On the 2-hour chart, price action has formed an overextended rally into a well-marked supply zone, signaling a potential short opportunity.
A rejection from this level could lead to a multi-leg correction toward key support zones.
Trade Setup:
Entry Zone (Sell): 1.13500 – 1.14000
Stop Loss: Above 1.14200
Target 1: 1.11405
Target 2: 1.09999
Final Target: 1.08000
Risk to Reward: Approx. 1:3+
Technical Outlook:
The price is approaching a historical resistance level.
A clear divergence is forming between price and momentum.
Multiple support levels are mapped out as potential profit-taking zones.
This setup favors a swing trade style approach.
Disclaimer:
This idea is for educational purposes only. Always conduct your own analysis and manage your risk accordingly.