The chart shows that after a strong bullish rally and forming a new high, the price has entered a corrective (bearish) phase. Currently, it is reacting to the 4H Order Block (OB – 4H), which is acting as a major demand zone. Buyers are showing initial strength at this area.
Current Market Structure
The medium-term trend remains bullish, but in the 1-hour timeframe, the market is experiencing a temporary correction with weakening buying pressure.
After testing the 4H demand zone (highlighted in green), price has shown a short-term bullish reaction and is now forming a corrective pullback to the upside.
Key Zones
Demand Zone:
The green area at the bottom represents a strong confluence of the 4H Order Block (OB – 4H) and a Fair Value Gap (FVG).
This zone acted as a support and triggered the recent bullish reaction.
Supply Zone:
The yellow area marked OB – 1H shows an important supply level.
If price continues higher, this zone is expected to act as resistance and attract sellers.
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Potential Scenarios
Main Scenario:
Price is likely to rise toward the 1H Order Block (OB – 1H) — aligning with the 0.5 Fibonacci retracement level — and then face renewed selling pressure.
In this case, short-term bullish targets are around $4,255 – $4,260, while the next bearish target after rejection would be near $4,220.
Alternative Scenario:
If the price breaks and holds above the OB – 1H zone, the bearish structure will be invalidated.
This could signal the start of a new bullish leg, aiming toward the previous high near $4,290.
Summary
- Overall trend remains bullish, but the market is forming a technical correction.
- The current zone is a decision point for either continuation or reversal.
- Traders should closely watch how price reacts around the OB – 1H area to confirm the next move.
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