FX.co ★ EUR/USD

EUR/USD 4H Technical Analysis The EUR/USD 4-hour chart is currently showing a clear bearish market structure after a strong rejection from higher price levels near the 1.1600 region. I can see that the market previously created a Higher High (HH) structure, but sellers stepped in aggressively and pushed the price downward with strong momentum. The recent sharp bearish move confirms that bullish strength has weakened, and the overall market structure is shifting toward seller control. Price is now retracing upward after this impulsive decline, which often happens before continuation in the dominant trend direction. Supply Zone Analysis A major Supply Zone is marked around the 1.1440 – 1.1480 area, highlighted by the purple zone on the chart. I identified this area as an important institutional selling zone where heavy selling pressure previously entered the market. The price has now returned to retest this region, and this reaction suggests sellers may defend this zone again. If rejection appears here, the bearish continuation scenario remains strong. Fair Value Gap (FVG) Observation The chart also shows a Fair Value Gap (FVG) positioned inside the supply area. This imbalance represents an inefficient price movement that the market often revisits before continuing its direction. I believe this FVG is acting as an additional confluence area, increasing the probability of fresh selling pressure entering the market. Trade Setup and Price Projection My trade setup focuses on the selling entry near 1.1410 – 1.1440, where the chart indicates a “Selling Start” zone. I am expecting rejection from this area, followed by a strong bearish continuation toward lower targets near 1.1250. As long as price remains below the supply zone, I remain biased toward further downside movement.