EURUSD Short: Corrective Pullback Into Demand Zone 1.1850

Feb 11

Hello traders! Here’s a clear technical breakdown of EURUSD (4H) based on the current market structure visible on the chart. EURUSD previously printed a strong impulsive bullish move that topped at a well-defined pivot high, where buying momentum began to weaken and sellers stepped in aggressively. From this pivot point, price reversed and entered a corrective bearish phase, forming a sequence of lower highs and lower lows. This decline was guided by a clean descending supply trend line, confirming controlled selling pressure rather than panic-driven liquidation. During this bearish leg, price also broke below a key rising trend line, reinforcing short-term bearish control. Eventually, the decline slowed near a lower pivot low, where selling pressure faded and buyers started to respond with strong demand. This reaction marked an important structural shift, as price began to stabilize and form higher lows, signaling that bearish momentum was losing strength. Following this pivot, EURUSD reclaimed structure with a strong bullish impulse, breaking above the descending supply trend line and confirming a change in short-term market character. After the breakout, price transitioned into a ranging phase, indicating temporary balance between buyers and sellers rather than immediate continuation. This range acted as a consolidation zone after the impulsive recovery, suggesting accumulation rather than distribution. A bullish breakout from the range confirmed renewed buyer interest and pushed price back into a higher supply area, where upside momentum has recently slowed.

Currently, EURUSD is pulling back from the Supply Zone and approaching the Demand Zone around 1.1850, which aligns closely with a rising demand trend line. This confluence makes the area a key battlefield between buyers and sellers. Price action so far suggests a corrective pullback rather than a full trend reversal, with no strong acceptance below demand yet. As long as price holds above this demand zone and continues to respect the rising trend line, the broader bullish structure remains intact.

My primary short scenario favors a move lower toward the 1.1850 Demand Zone, as long as price remains capped below the Supply Zone and fails to reclaim bullish momentum. The current pullback appears corrective, not impulsive, supporting the short continuation bias toward demand. A strong bearish reaction into 1.1850 would complete the corrective leg, where partial profits can be secured. However, a strong bullish reaction or acceptance above supply would invalidate the short idea and signal renewed upside potential. Until then, structure and price behavior favor a downside rotation into demand. Manage your risk!

Feb 12

Trade closed: target reached

The analysis worked perfectly. Everything happened as we expected. At the resistance level, it was clear that sellers were pushing the price away, and therefore it went to retest the support. The goal was achieved!