EURUSD Long: Demand Zone Holds - Bulls Preparing Next Leg

Feb 4

Hello traders! Here’s a clear technical breakdown of EURUSD (2H) based on the current chart structure. EURUSD previously traded within a well-defined descending channel, where price consistently respected the descending resistance and support lines, forming a series of lower highs and lower lows. This structure confirmed sustained bearish pressure and orderly downside continuation. The bearish phase eventually reached a key pivot point, where selling momentum weakened and buyers began to step in. Following this pivot, price broke out of the descending channel and transitioned into a ranging phase, indicating temporary balance between buyers and sellers after the trend shift. This range acted as an accumulation zone before the next impulsive move. A clean bullish breakout above the range confirmed renewed buyer control and initiated a strong impulsive rally to the upside.

Currently, EURUSD is pulling back from supply and retesting the Demand Zone around 1.1800, which aligns closely with a rising demand trend line. A brief fake breakout below demand has already occurred, followed by a quick recovery back above the level — a strong sign that sellers failed to gain acceptance below support. This behavior suggests that the current pullback is corrective rather than a full trend reversal.

My primary scenario, as long as EURUSD holds above the 1.1800 Demand Zone and continues to respect the rising demand line, the bullish structure remains intact. A sustained reaction from this area could lead to a renewed upside move, targeting a retest of the 1.1890 Supply Zone (TP1). A clean breakout and acceptance above supply would confirm bullish continuation and open the door for further upside expansion. However, a decisive breakdown and acceptance below the demand zone and trend line would invalidate the bullish scenario and signal a deeper corrective phase. For now, structure, trend, and price behavior continue to favor buyers, with demand acting as the key battlefield. Manage your risk!

Feb 5

Trade active

The Euro will continue to consolidate before showing the next move. Therefore, we will continue to monitor the situation.

Feb 6

Note

We see that the euro is still in the accumulation phase before the next movement, so we will analyze the situation again.

Feb 8

Trade closed manually

The euro continues its movement in the accumulation phase, so it is not yet clear how the price will behave further.