Hello traders! Let’s break down today’s EURUSD chart, which is flashing some strong bearish technical signal you shouldn’t ignore.
EURUSD Trading Signal – Bearish Plan & Target by Guriforex
We’ve seen the EURUSD price break firmly below the neckline of a clear Head and Shoulders pattern on the 4H timeframe—a classic sign that the bullish trend is losing steam. This pattern is one of the most reliable reversal formations, often signaling the start of a new downtrend once the neckline gives way.
After the break, price action is now testing the 50-period Moving Average (MA50). This moving average acts as dynamic support or resistance. A strong rejection from here will add even more weight to the bearish scenario.
But there’s more: the chart is showing an uncovered Fair Value Gap (FVG) / Imbalance below current price. Markets have a tendency to “seek” these imbalances, filling the gap to restore equilibrium. This acts like a magnet for price, giving us a very logical target zone.
We’re watching for a decisive move below 1.1740, which would confirm sellers are in control and trigger our setup.
📌 EURUSD Trade Plan
🔽 We consider selling EURUSD on a confirmed break below 1.1740.
- This level marks the clean neckline break and confirms the transition to a new bearish trend leg.
🎯 Target 1: 1.1680
- The first logical stop aligns with previous support and the top edge of the imbalance zone.
🎯 Target 2: 1.1620
- The base of the FVG, completing the imbalance fill and maximizing profit potential.
⚡️ Why This EURUSD Setup Matters
✅ Strong reversal pattern (H&S) with neckline break.
✅ MA50 test as dynamic support.
✅ Clear downside liquidity target in the imbalance zone.
This setup is a great example of how multiple confluences can strengthen a trade idea.
📣 As always, trade with discipline! Watch for clear closes below 1.1740 before entering, and manage risk wisely.
❤️❤️❤️ Hit like if you’re eyeing this short setup! What are your thoughts on EURUSD today?