EUR/USD 4H – Approaching Major Supply Zone | Potential Mid-Term EUR/USD 4H – Approaching Major Supply Zone | Potential Mid-Term Reversal
Euro has extended its bullish rally into a historically strong supply/resistance zone around 1.17185 – 1.19774, which aligns with the previous rejection zone from mid-2024. Price is showing signs of slowing down near this upper boundary.
🔍 Key Technical Highlights:
Strong Supply Zone (1.1718 – 1.1977): A major resistance area that previously triggered sharp sell-offs. This zone is now retested after months of bullish recovery.
Momentum Divergence Potential: Price has climbed aggressively, but with signs of exhaustion visible on the lower timeframe candles.
Demand Zones Below:
First support at 1.15998
Followed by deeper demand areas at 1.14990, 1.12850, and 1.11046 – all marking clean reaction zones.
📊 Trade Setup:
Bias: Short (swing position)
Sell Entry Zone: 1.17185 – 1.19774
Stop Loss: Above 1.19800 (above key supply zone)
Take Profit Targets:
TP1: 1.15998
TP2: 1.12850
TP3: 1.11000
🧠 Tactical Note:
Watch for bearish confirmation (engulfing candle / structure break) before executing entries. A clean rejection from the supply zone could provide an attractive swing setup with a favorable risk-reward profile.
