EURUSD was trending higher on the 1-hour chart.
However, price rejected from the recent high. This created a short-term correction view on the lower time frame.
The 15-minute chart showed bearish pressure. Price started breaking short-term lower lows.
The main plan was to wait for price to collect liquidity, revisit the supply zone, and then look for bearish confirmation.
EURUSD 1-Hour Market View
EURUSD was moving in an upward trend on the 1-hour chart.
Price had pushed higher, but the move started to slow near the recent high. Sellers reacted from that area.
This reaction did not automatically cancel the broader bullish structure. Still, it created a short-term bearish opportunity on the lower time frame.
For this reason, traders needed to focus on confirmation, not only direction.
15-Minute Chart View
On the 15-minute chart, EURUSD started forming a short-term bearish move.
Price broke some lower lows. This showed that sellers were active in the short term.
The lower-timeframe structure suggested that price could move toward liquidity before deciding the next direction.
A short setup could become valid if price returned to supply and rejected again.
Trendline Liquidity
The chart showed trendline liquidity.
Trendline liquidity often attracts price because many traders place stop orders around obvious trendline areas.
EURUSD could move toward that liquidity first. After that, price could visit the short-term supply zone.
This is why the trading plan needed patience.
Liquidity gives the market a possible target. The reaction after liquidity is taken gives traders the next clue.
Short-Term Supply Zone
A short-term supply zone was visible above the current price area.
This zone was important because sellers could defend it again.
If EURUSD collected liquidity and then rejected from supply, the bearish setup could become stronger.
If price broke above the supply zone with strength, the sell idea would become weaker.
Video Analysis
The embedded short video explains the EURUSD liquidity area, short-term supply zone, and possible sell setup.
Trading Plan for EURUSD
The trading plan was to wait for price to reach the supply area.
If EURUSD showed correct bearish price action from that zone, a short trade could be considered.
The sell target could be below the area shown in the video analysis.
If price failed to reject from supply, traders needed to wait for new structure.
- Main view: Short-term bearish after rejection from the high.
- Time frame: 1-hour trend with 15-minute bearish structure.
- Key area: Short-term supply zone.
- Liquidity: Trendline liquidity before possible supply reaction.
- Entry trigger: Bearish confirmation from supply.
- Risk point: Strong break above supply weakens the sell plan.
Market Order Flow View
This analysis followed the market order flow method.
Order flow helps traders read how price moves between liquidity, supply, and demand zones.
In this EURUSD setup, the market showed rejection from a high, lower-timeframe bearish structure, and possible liquidity collection.
For better understanding of trade execution and order types, traders can read our guide on forex orders.
Risk Management View
A short setup still needs a clear invalidation level.
The stop loss should be placed where the sell idea becomes wrong. It should not be placed randomly.
If price breaks above the supply zone and holds, the short setup becomes weaker.
For better stop-loss planning, traders can read our guide on how to set a stop-loss order.
Signal Planning View
This type of EURUSD setup needs confirmation.
A good signal plan should include entry logic, stop loss, target, and trade-management rules.
Traders who want planned trade ideas with entry, stop loss, take profit, and trade-management updates can learn more about our forex signals service.
The goal is not to sell every rejection. The goal is to wait for liquidity, supply reaction, confirmation, and controlled risk.
Final Thoughts
EURUSD was trending higher on the 1-hour chart, but price rejected from the recent high.
The 15-minute chart showed short-term bearish pressure and lower-low formation.
The key plan was to watch trendline liquidity and the short-term supply zone.
If price rejected from supply with confirmation, the short setup could remain valid. If supply failed, traders needed to wait for a new structure.
Editorial Note: This post was prepared as a PreferForex EURUSD 1-hour analysis for May 17, 2023. It explains the rejection from the high, 15-minute bearish structure, trendline liquidity, short-term supply zone, video analysis, and risk-focused sell 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.