Shorted EURUSD at H4 Supply in Sideways Market

This supply on the EURUSD H4 chart looks pretty decent, the arrival into the drop-base-drop supply zone was good enough to place a limit order at 1.1280 with a stop loss at 1.1340. The target is the support line, which is only a few pips above daily demand zone.

EURUSDH4#07-02

Price is approaching my target, I moved my SL to breakeven.

EURUSDH4#07-03

Finally price did not make it to my target point. Instead it retraced back to entry and hit my SL. In hindsight I would say, that my target was not ideally set. My thought was, that it would break the support after testing it 3 times.

Possible reasons why it did not make it to target:

  • there was no clear trend (if my supply zone would cause a break of support, trend would be down)
  • the daily demand zone was still intact and not deeply consumed (less chance for breaking support)

The real target should have been the little H4 demand (not marked on chart) which caused price to reverse right before my target point.