On the 4-hour timeframe of EUR/USD, the market has entered a corrective phase following a strong bullish impulse. After reaching a major supply zone in the upper part of the chart (highlighted in red), price faced selling pressure and failed to hold above this resistance. This area represents a key higher-timeframe supply zone and has triggered a short-term shift in momentum.
The subsequent decline toward the FVG-D level indicates the market’s tendency to rebalance and fill the fair value gap. This zone has acted as a dynamic resistance, and the bearish reaction from it has reinforced the corrective scenario. Currently, price is consolidating within a mid-range equilibrium area (the yellow zone), reflecting market indecision and weakening short-term trend strength.
From a broader structural perspective, as long as price remains above the lower support zone and the weekly order block (OB-W), the higher-timeframe bullish structure stays intact. However, for bullish continuation to resume, price needs to reclaim and stabilize above the intermediate resistance levels and the FVG zone. Failure to do so could increase selling pressure and open the door for a deeper pullback toward lower support areas.
Submit Your Comments
(Replying)
Please keep in mind to avoid offensive keywords and also fake information.
Be the first one to comment.