EUR/USD – Price Approaching Key Demand Zone | 4H SMC Analysis
Pair: EUR/USD
Timeframe: 4H (4Hour)
Bias: Bullish Reversal Watch at Demand
Strategy: Smart Money Concepts (SMC)
Status: Monitoring price action at demand for possible long setup.
Market Structure Overview
The EUR/USD pair recently showed a bearish shift in structure after failing to hold the bullish trend that began mid-June.
* Initial bullish structure is visible with a clear Break of Structure (BOS) to the upside.
* The rally created a Fair Value Gap (FVG) and left behind a well-defined Demand Zone.
* After the BOS, price retraced and respected the demand before making new highs.
* Eventually, price failed to make a new high and started forming lower highs and lower lows, shifting momentum bearish.
Current Price Action
* Price has aggressively dropped from the previous supply area (highlighted in red) and is now approaching a key demand zone around 1.1485–1.1447.
* This zone coincides with:
* A previous FVG fill area.
* The base of the last strong impulsive move up.
* Consolidation and accumulation structure before the bullish breakout.
Key Zones
* Demand Zone: 1.1485 – 1.1447
* This zone represents an institutional buying area.
* Looking for potential bullish reaction from here.
* Supply Zone: Around 1.1818 – 1.1834
* Last zone of distribution before price dropped.
Possible Scenarios
Bullish Reversal
* Price shows rejection candles, internal bullish BOS, or engulfing pattern within demand.
* A long entry could be considered with:
* Stop Loss just below demand zone.
* Targets: Previous highs at 1.1726 and 1.1818.
Bearish Continuation
* If price breaks and closes below the demand, it invalidates the bullish idea.
* Expect continued bearish pressure toward 1.1400 or lower.
* Look for a potential retest of broken demand as new supply.
SMC Concepts in Use
* BOS (Break of Structure): Used to identify market shifts.
* FVG (Fair Value Gap): Spotting inefficiencies to anticipate retracements.
* Demand Zone: Watching for institutional buying and smart money footprints.
Trade Plan Summary
| Element | Value |
| Entry | Upon bullish confirmation in demand |
| Stop Loss | Below 1.1447 (zone invalidation) |
| Target 1 | 1.17265 |
| Target 2 | 1.18182 |
| Invalidated if | Price closes below demand zone |
Conclusion
We’re at a make or break level for EUR/USD. Price is testing a major demand zone with confluence from structure, FVG, and past bullish movement. Watching for reaction before taking action. Risk managed entries only.
Pair: EUR/USD
Timeframe: 4H (4Hour)
Bias: Bullish Reversal Watch at Demand
Strategy: Smart Money Concepts (SMC)
Status: Monitoring price action at demand for possible long setup.
Market Structure Overview
The EUR/USD pair recently showed a bearish shift in structure after failing to hold the bullish trend that began mid-June.
* Initial bullish structure is visible with a clear Break of Structure (BOS) to the upside.
* The rally created a Fair Value Gap (FVG) and left behind a well-defined Demand Zone.
* After the BOS, price retraced and respected the demand before making new highs.
* Eventually, price failed to make a new high and started forming lower highs and lower lows, shifting momentum bearish.
Current Price Action
* Price has aggressively dropped from the previous supply area (highlighted in red) and is now approaching a key demand zone around 1.1485–1.1447.
* This zone coincides with:
* A previous FVG fill area.
* The base of the last strong impulsive move up.
* Consolidation and accumulation structure before the bullish breakout.
Key Zones
* Demand Zone: 1.1485 – 1.1447
* This zone represents an institutional buying area.
* Looking for potential bullish reaction from here.
* Supply Zone: Around 1.1818 – 1.1834
* Last zone of distribution before price dropped.
Possible Scenarios
Bullish Reversal
* Price shows rejection candles, internal bullish BOS, or engulfing pattern within demand.
* A long entry could be considered with:
* Stop Loss just below demand zone.
* Targets: Previous highs at 1.1726 and 1.1818.
Bearish Continuation
* If price breaks and closes below the demand, it invalidates the bullish idea.
* Expect continued bearish pressure toward 1.1400 or lower.
* Look for a potential retest of broken demand as new supply.
SMC Concepts in Use
* BOS (Break of Structure): Used to identify market shifts.
* FVG (Fair Value Gap): Spotting inefficiencies to anticipate retracements.
* Demand Zone: Watching for institutional buying and smart money footprints.
Trade Plan Summary
| Element | Value |
| Entry | Upon bullish confirmation in demand |
| Stop Loss | Below 1.1447 (zone invalidation) |
| Target 1 | 1.17265 |
| Target 2 | 1.18182 |
| Invalidated if | Price closes below demand zone |
Conclusion
We’re at a make or break level for EUR/USD. Price is testing a major demand zone with confluence from structure, FVG, and past bullish movement. Watching for reaction before taking action. Risk managed entries only.
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.
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.