Downloading...

EURUSD Analysis : Rejection at Demand – Institutional Buy Setup

73
🔍 Technical Storyline – What the Chart Tells Us:
🔸 1. Previous Bearish Structure – Descending Channel:
Price has been moving within a well-respected bearish channel, signifying structured sell-side liquidity control.

This channel served as a trap zone, where retail sellers were induced while institutions accumulated buy-side positions below the range.

The controlled movement inside the channel ended with a breakout to the upside, signaling a disruption in bearish control.

🔸 2. QFL Zone Formation – Manipulation & Liquidity Grab:
QFL (Quasimodo Failure Level) is evident in two phases here:

The first QFL acts as a reaction point where the market dropped to test demand and rallied aggressively.

The second QFL near the highs shows price swept previous liquidity before dumping, hinting at institutional profit-taking and possible redistribution into discount areas.

🔸 3. Central Reversal Zone (CRZ):
Price reversed sharply from this CRZ, which acted as a major supply level. The CRZ marks the top of the manipulation range.

This was a liquidity sweep targeting trapped long positions that entered too late at the highs.

🔸 4. Demand Revisit + Positive Rejection Pattern (Current Phase):
Price has now reached the MMC-validated demand zone, which previously launched a strong bullish move.

The long lower wick in the latest candle shows buyer absorption, suggesting early signs of a Positive Reversal Pattern.

This area is marked with high probability for bullish continuation, as it aligns with both technical support and smart money logic.

💡 Trading Plan & Market Mindset:
🔸 📈 Bullish Scenario (High-Probability Play):
Wait for bullish confirmation, such as:

Bullish engulfing on 1H/4H

Break of minor intraday structure (e.g., break of internal LH)

Strong volume surge from the zone

Entry zone: Within the demand block – 1.15500 to 1.15750

Stop-loss: Just below the demand zone (1.15250)

Target 1 (TP1): 1.16500 – minor intraday resistance

Target 2 (TP2): 1.17500–1.18000 – retest of QFL high and Central Reversal Zone

🔸 ❌ Bearish Invalidator:
A 4H candle close below 1.15250 would break the demand zone structure.

Invalidation of MMC reversal – move toward deeper liquidity (1.14500–1.14800)

🧠 Trader’s Psychology & Institutional Mindset:
Institutions often induce price spikes to trap both buyers and sellers.

This entire structure reflects classic accumulation → manipulation → distribution → reaccumulation.

The retest of the original demand zone allows institutions to re-enter at discount before pushing price back toward the highs.

“In MMC, patterns are not just shapes – they are footprints of institutional intent.”

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.