EURUSD Short: Rally Stalls at Supply - Key Reaction Near 1.1800
Hello traders! Here’s a clear technical breakdown of EURUSD (1H) based on the current chart structure. EURUSD has recently completed a notable structural shift after trading within a well-defined descending channel. During this phase, price consistently respected the falling resistance and printed lower highs and lower lows, confirming short-term bearish control. This bearish structure eventually reached a key pivot low, where selling pressure weakened and buyers began to step in. From this pivot point, EURUSD broke out of the descending channel, signaling the end of the corrective phase and the start of a bullish recovery.
Currently, EURUSD is pulling back from the supply area along the descending supply line, indicating a corrective retracement rather than a full trend reversal. Below the current price, the Demand Zone near 1.1800 stands out as a key level. This zone represents previous resistance turned support and aligns with the base of the impulsive move, making it a critical area for buyers to defend.
My primary scenario favors a pullback toward the 1.1800 Demand Zone while price remains below the descending supply line and the 1.1880–1.1900 Supply Zone. A controlled retracement into demand could provide a healthy correction within the broader bullish recovery structure, potentially setting the stage for another upside attempt. However, a strong rejection from the supply line followed by a clean breakdown and acceptance below 1.1800 would invalidate the bullish recovery scenario and signal a return to bearish pressure. Conversely, a decisive breakout and acceptance above the 1.1900 Supply Zone would confirm bullish continuation and open the door for further upside expansion. For now, EURUSD is at a key decision point, and patience is required as price react