EURUSD was trading with a bearish outlook after reacting from a previous supply zone.
However, price was also making a corrective move to the upside. This type of move can happen before the market continues in the main bearish direction.
The main view was to watch the corrective move into supply and wait for bearish confirmation before expecting another sell-off.
EURUSD Overall Outlook
EURUSD had been showing bearish pressure after reacting from the earlier supply zone.
At the same time, the market started to move higher in a correction phase. This looked more like a temporary retracement than a full bullish reversal.
A corrective move can give traders a better area to plan a sell setup. The key is to wait for price to reach a meaningful supply area first.
Supply Zone and Retracement
A supply zone is an area where sellers may become active.
In a bearish market, supply zones often act as resistance. Price can retrace into these areas before sellers return.
The corrective upside move gave traders a level to watch. If EURUSD reached supply and rejected, the bearish plan could become stronger.
Still, traders should not sell only because price reaches the zone. Confirmation is needed.
Video Analysis
The embedded video explains the EURUSD supply-zone view, corrective move, and short trading plan for the week.
How to Trade This Setup
The corrective move can attract short-term buyers.
However, the broader structure still favored sellers. For this reason, the correction was treated as a possible setup area for a short trade.
The plan was to wait for price to move into the supply zone. If price rejected from that area, a sell setup could form.
This approach is more structured than selling randomly during the correction.
A correction into supply is useful only when price confirms that sellers are returning.
Short Trading Setup
The short setup needed a clear reaction from the supply zone.
A bearish candle, rejection wick, or lower-timeframe structure shift could support the sell idea.
If price broke above the supply zone with strength, the short idea would become weaker.
In that case, traders should wait for a new structure instead of forcing a sell entry.
- Main bias: Bearish while supply holds.
- Current phase: Corrective move to the upside.
- Key area: Supply zone.
- Entry trigger: Bearish confirmation from supply.
- Risk point: Strong break above supply weakens the sell idea.
Market Order Flow View
This analysis followed a market order flow approach.
Order flow helps traders understand how price moves between supply, demand, and liquidity zones.
In this EURUSD outlook, the corrective move was important because price was moving toward a possible selling area.
For better understanding of order placement and execution, traders can read our guide on forex orders.
Risk Management View
A bearish setup still needs a clear risk plan.
The stop loss should be placed where the sell idea becomes invalid. It should not be placed randomly.
The target should also be clear before entry. Traders can use nearby lows, liquidity areas, or demand zones as target references.
For stronger risk planning, traders can review our guide on how to set a stop-loss order.
Signal Planning View
This type of setup needs patience.
A good signal plan should include entry logic, stop loss, take profit, and trade-management rules.
Traders who want structured trade ideas with planned entry, stop loss, take profit, and trade-management updates can learn more about our forex signals service.
The goal is not to sell every bounce. The goal is to wait for the right zone, clear confirmation, and controlled risk.
Expected Scenario
The expected scenario was a corrective move first.
After that, EURUSD could reject from supply and continue lower.
If sellers confirmed from the zone, the market could start a fresh sell-off during the week.
If price broke above supply, the bearish plan would need reassessment.
Final Thoughts
EURUSD was showing bearish structure, but price was correcting upward.
This correction created a possible sell area near supply. Traders needed to wait for confirmation before entering.
The cleaner plan was to watch the supply zone, define risk, and wait for price action to show whether sellers were returning.
As always, every setup needs a clear stop loss, realistic target, and proper risk control.
Editorial Note: This post was prepared as a PreferForex EURUSD weekly outlook for July 2, 2023. It explains the bearish structure, corrective move, supply-zone reaction, video analysis, and risk-focused short trading plan.
Risk Disclaimer: Forex trading involves risk and can result in financial loss. This post is for educational and informational purposes only and does not constitute financial advice, investment advice, or a guarantee of trading results. Always trade with proper risk management.
