✅ Market Structure Summary:
The market entered a distribution phase, clearly forming equal highs and a head & shoulders–like pattern.
After breaking out of the descending wedge, price surged upward to tap the upper supply zone (gray), sweeping liquidity before dropping sharply.
We now see price reacting to a mid-demand zone, with another deeper demand zone resting below.
📍 Key Technical Zones:
🔹 Upper Gray Supply Zone:
This zone was tapped after liquidity was grabbed from the equal highs.
Strong bearish rejection with impulse candles confirms it as a valid shorting zone.
It remains active and could act as a trap if retested without proper bullish structure.
🔹 Mid-Demand Zone (current reaction point):
Price is currently reacting from this area.
Initial bullish reaction is visible, but the reaction isn't strong enough yet to confirm reversal.
Weak buyer pressure (wicky candles) suggests vulnerability.
🔹 Lower Demand Zone (main target if breakdown occurs):
If the current zone fails, price will likely drop toward this deeper demand block, which hasn't been mitigated yet.
This area could offer a more solid foundation for a bullish reversal.
🔮 Forecast Scenarios:
📉 Primary Bearish Scenario:
If price fails to create higher highs from the current mid-demand zone:
Expect a continuation down toward the lower gray demand zone.
If that breaks, price could target the green higher-timeframe demand around 1.37200.
📈 Alternative Bullish Scenario:
If price builds structure and forms a higher high from this zone:
A short-term rally back toward the upper supply zone is possible.
However, without a strong breakout, that area still holds risk for another sell-off.
The market entered a distribution phase, clearly forming equal highs and a head & shoulders–like pattern.
After breaking out of the descending wedge, price surged upward to tap the upper supply zone (gray), sweeping liquidity before dropping sharply.
We now see price reacting to a mid-demand zone, with another deeper demand zone resting below.
📍 Key Technical Zones:
🔹 Upper Gray Supply Zone:
This zone was tapped after liquidity was grabbed from the equal highs.
Strong bearish rejection with impulse candles confirms it as a valid shorting zone.
It remains active and could act as a trap if retested without proper bullish structure.
🔹 Mid-Demand Zone (current reaction point):
Price is currently reacting from this area.
Initial bullish reaction is visible, but the reaction isn't strong enough yet to confirm reversal.
Weak buyer pressure (wicky candles) suggests vulnerability.
🔹 Lower Demand Zone (main target if breakdown occurs):
If the current zone fails, price will likely drop toward this deeper demand block, which hasn't been mitigated yet.
This area could offer a more solid foundation for a bullish reversal.
🔮 Forecast Scenarios:
📉 Primary Bearish Scenario:
If price fails to create higher highs from the current mid-demand zone:
Expect a continuation down toward the lower gray demand zone.
If that breaks, price could target the green higher-timeframe demand around 1.37200.
📈 Alternative Bullish Scenario:
If price builds structure and forms a higher high from this zone:
A short-term rally back toward the upper supply zone is possible.
However, without a strong breakout, that area still holds risk for another sell-off.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.