EURUSD – HTF Supply Reaction After Liquidity EngineeringEuro / U.S. DollarFOREXCOM:EURUSDAFOKEFollowing the initial break of structure (BOS) to the upside, price established a short-term bullish continuation. However, this bullish momentum was not sustained, as the market subsequently delivered a clear change of character (CHoCH), signaling a shift from bullish to bearish order flow. This transition marked the beginning of bearish intent on the higher timeframe. Post-CHoCH, price formed a higher timeframe supply zone, which serves as a key area of interest. Price has since retraced into this zone, where we observe: • Buy-side liquidity taken above prior highs • A reaction from HTF supply • Early signs of bearish rejection and momentum slowdown This behavior reinforces the idea that the retracement into supply is a distribution phase, rather than a continuation of the previous bullish move. 🔍 CURRENT EXPECTATION With bearish order flow now established: • The market is expected to continue lower • Targeting higher timeframe sell-side liquidity (SSL) resting below • A bearish break of structure (BOS) is anticipated to further confirm continuation 🧠 KEY INSIGHT The change of character (CHoCH) provides the first confirmation of a shift in market direction. The return to HTF supply + liquidity grab provides the entry narrative. The expected BOS to the downside provides the confirmation of continuation. 🎯 SUMMARY Price is currently reacting from a higher timeframe supply zone after taking liquidity, within a newly established bearish context. As long as price respects this supply zone, the probability favors a continuation to the downside, with the objective of sweeping sell-side liquidity below and forming a bearish break of structure.