EURUSD was showing short-term bullish movement toward the nearest trendline liquidity pool.
However, the broader plan was not to chase the upside. After collecting liquidity, price could visit the short-term supply zone and then resume bearish movement.
The main plan was to wait for EURUSD to collect trendline liquidity, react from supply, and then confirm a short setup.
EURUSD Short-Term Market View
EURUSD was moving higher on the 1-hour chart.
Price was trending up in the short term, but it had already rejected from a recent high. This showed that buyers were active, but the upside move was not clean.
The next important area was the trendline liquidity pool. Price could move toward that zone before the next bearish reaction.
1-Hour Chart View
On the 1-hour chart, EURUSD was still moving upward.
However, the rejection from the high created caution. A market can move higher in the short term and still prepare for a sell setup from supply.
For this reason, traders needed to wait. The better setup was expected after price reached liquidity and reacted from the supply area.
15-Minute Chart View
On the 15-minute chart, EURUSD was forming short-term bearish pressure.
Price was breaking some lower lows. This showed that sellers were becoming active on the lower time frame.
Still, price could move higher first to collect liquidity. That move could complete the pullback before sellers return.
Trendline Liquidity
Trendline liquidity was an important part of this setup.
Many traders place stop orders around obvious trendlines. For this reason, price can move toward those areas before reversing.
In this EURUSD setup, the market could collect the liquidity first. After that, price could move into the short-term supply zone.
Liquidity is not always the entry. It is often the area price visits before the real setup forms.
Short-Term Supply Zone
A short-term supply zone was visible above price.
This zone was important because sellers could defend it again. If price reached the zone and rejected, the sell idea could become stronger.
If EURUSD broke above supply with strength, the bearish setup would become weaker.
Video Analysis
The embedded video explains the EURUSD trendline liquidity, short-term supply zone, and possible sell setup.
Trading Plan for EURUSD
The trading plan was to wait for price to collect liquidity and move into the supply area.
If EURUSD showed correct bearish price action from that area, 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.
- Short-term view: Bullish move toward trendline liquidity.
- Main setup: Possible sell from short-term supply.
- Lower-timeframe clue: 15-minute bearish pressure and lower lows.
- Entry trigger: Bearish confirmation from supply.
- Risk point: Strong break above supply weakens the sell plan.
Order Flow Trading View
This analysis was based on the market order flow method.
Order flow helps traders read how price moves between liquidity areas, supply zones, and demand zones.
In this setup, the market could move up to collect liquidity first. Then the sell setup could form from the supply area.
For better understanding of order placement and execution, 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 patience.
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 enter before liquidity is taken. The goal is to wait for liquidity, supply reaction, confirmation, and controlled risk.
Final Thoughts
EURUSD had a short-term bullish path toward trendline liquidity.
After that liquidity was collected, price could visit the short-term supply zone and resume bearish movement.
The better plan was to wait for price action in the supply area. If sellers confirmed, the short setup could become valid.
As always, traders should wait for confirmation, define risk, and avoid entering only because price reaches a marked zone.
Editorial Note: This post was prepared as a PreferForex EURUSD short-term analysis for May 8, 2023. It explains the trendline liquidity pool, short-term supply zone, 15-minute bearish pressure, 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.