EURUSD Short: Testing Critical Support Within Bearish Structure
Hello traders! Here’s my technical outlook on EURUSD (4H) based on the current market structure. EURUSD is trading within a broader corrective bearish phase after rejecting the pivot high that marked the end of the previous bullish expansion. Following that rejection, price failed to sustain upward momentum and transitioned into a downward move, establishing a supply-driven structure. The earlier breakout above resistance briefly suggested continuation, but the move lacked follow-through and quickly transitioned into consolidation, forming a clear horizontal range. This range reflected equilibrium between buyers and sellers rather than strong accumulation. After breaking below the range support, price confirmed renewed bearish pressure and resumed its downward movement. The subsequent structure shows a series of lower highs, while a descending supply trend line now acts as dynamic resistance, guiding the market lower and reinforcing seller control. The repeated inability to reclaim the previous resistance zone highlights that supply remains active and continues to cap bullish attempts.
Currently, EURUSD is approaching the demand zone near 1.1740, where prior buying interest previously prevented further downside. This level represents a liquidity pocket where reactions are likely, especially given the confluence of horizontal demand and the projected path of the descending supply structure. While short-term bounces may occur from this area, the broader structure still leans bearish unless price can reclaim higher resistance levels.
My primary scenario favors continued downside pressure as long as EURUSD remains below the supply line and fails to reclaim the former range resistance. Rejection from the supply zone could trigger another leg lower toward the demand region 1.1740 , where buyers may attempt to stabilize price again. However, if price finds strong acceptance above the supply trend line and breaks back into the prior range, this would weaken the bearish outlook and signal a potential structural transition into consolidation or recovery. Until such confirmation appears, the prevailing structure and positioning continue to favor sellers. Manage your risk!
Currently, EURUSD is approaching the demand zone near 1.1740, where prior buying interest previously prevented further downside. This level represents a liquidity pocket where reactions are likely, especially given the confluence of horizontal demand and the projected path of the descending supply structure. While short-term bounces may occur from this area, the broader structure still leans bearish unless price can reclaim higher resistance levels.
My primary scenario favors continued downside pressure as long as EURUSD remains below the supply line and fails to reclaim the former range resistance. Rejection from the supply zone could trigger another leg lower toward the demand region 1.1740 , where buyers may attempt to stabilize price again. However, if price finds strong acceptance above the supply trend line and breaks back into the prior range, this would weaken the bearish outlook and signal a potential structural transition into consolidation or recovery. Until such confirmation appears, the prevailing structure and positioning continue to favor sellers. Manage your risk!
Trade ativo
We see that buyers had the opportunity to change the trend, but sellers intervened and the price gradually returned to the movement we predicted.Nota
So far, the euro price has tested the resistance zone. A pullback to the support zone that we identified in our analysis is still possible, so we are watching.Trade fechado manualmente
For now, we can observe a picture of uncertainty. The euro is currently in a consolidation phase and the movement can be in any direction.
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💎 I'm open for cooperation/advertising, not interested in rebate
🔥 Join our paid VIP community with Forex and Crypto signals in order to improve your trading skills, my contact 👉 t.me/henii_trader
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As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.