Pattern and candlestick read
This looks like a bearish engulfing / failed recovery pattern on H4. Price formed a lower-high area near 1.1615, then printed a strong bearish candle that wiped out the previous bullish recovery. That type of candle usually shows aggressive seller control.
You can also call this a bearish rejection from supply or a bear flag failure, because price tried to recover but failed to hold above the mid-band and then broke down hard.
Key levels
Resistance:
1.1535–1.1560
1.1584–1.1600
1.1615 major rejection zone
Support:
1.1508
1.1492
1.1477
1.1450 if bearish momentum continues
Best trade plan
I would not sell right now at 1.1511 because price already dropped hard and is near support. The cleaner setup is a pullback sell.
Pullback sell setup:
Entry: 1.1535–1.1560 if price retests and rejects
Stop loss: 1.1605
TP1: 1.1508
TP2: 1.1492
TP3: 1.1477
Breakdown setup:
If H4 closes below 1.1492, wait for a retest of 1.1492–1.1500 from underneath.
Sell rejection there.
Targets: 1.1477, then 1.1450.
Invalidation
The bearish setup weakens if H4 reclaims 1.1560.
It becomes invalid if price closes back above 1.1600–1.1615, because that would mean the bearish rejection failed.
ForexFactory style paragraph
EURUSD H4 is showing strong bearish continuation after rejecting the 1.1600–1.1615 supply zone. The recovery attempt failed, and the latest H4 candle formed a strong bearish engulfing-style move back toward 1.1510. This confirms seller control and keeps the bias bearish while price remains below 1.1560–1.1600. I do not want to chase the move at the lows, but I prefer selling a pullback into 1.1535–1.1560 with bearish rejection, targeting 1.1508, 1.1492, and 1.1477. A sustained reclaim above 1.1600 would invalidate the bearish continuation setup.
This looks like a bearish engulfing / failed recovery pattern on H4. Price formed a lower-high area near 1.1615, then printed a strong bearish candle that wiped out the previous bullish recovery. That type of candle usually shows aggressive seller control.
You can also call this a bearish rejection from supply or a bear flag failure, because price tried to recover but failed to hold above the mid-band and then broke down hard.
Key levels
Resistance:
1.1535–1.1560
1.1584–1.1600
1.1615 major rejection zone
Support:
1.1508
1.1492
1.1477
1.1450 if bearish momentum continues
Best trade plan
I would not sell right now at 1.1511 because price already dropped hard and is near support. The cleaner setup is a pullback sell.
Pullback sell setup:
Entry: 1.1535–1.1560 if price retests and rejects
Stop loss: 1.1605
TP1: 1.1508
TP2: 1.1492
TP3: 1.1477
Breakdown setup:
If H4 closes below 1.1492, wait for a retest of 1.1492–1.1500 from underneath.
Sell rejection there.
Targets: 1.1477, then 1.1450.
Invalidation
The bearish setup weakens if H4 reclaims 1.1560.
It becomes invalid if price closes back above 1.1600–1.1615, because that would mean the bearish rejection failed.
ForexFactory style paragraph
EURUSD H4 is showing strong bearish continuation after rejecting the 1.1600–1.1615 supply zone. The recovery attempt failed, and the latest H4 candle formed a strong bearish engulfing-style move back toward 1.1510. This confirms seller control and keeps the bias bearish while price remains below 1.1560–1.1600. I do not want to chase the move at the lows, but I prefer selling a pullback into 1.1535–1.1560 with bearish rejection, targeting 1.1508, 1.1492, and 1.1477. A sustained reclaim above 1.1600 would invalidate the bearish continuation setup.
Attached Image (click to enlarge)
