EURUSD has staged an impressive recovery after sweeping the weekly lows, but price is now approaching a critical area where the next directional move could be decided.
The recent bullish expansion reclaimed key structure and pushed the market back above support, bringing price into the vicinity of the previous week's high. This level often attracts liquidity, making it a natural target for both institutional and retail positioning.
While momentum remains bullish in the short term, the area between the previous week's high and the liquidity resting above presents a potential reaction zone. Rather than selling blindly into strength, I am looking for bearish confirmation on lower timeframes before considering any short exposure.
The reasoning is simple: markets frequently seek liquidity before reversing. If buyers continue to drive price higher and sweep the liquidity above, a rejection from that zone could provide the fuel for a corrective move back toward support. On the other hand, a clean break and acceptance above liquidity would invalidate the bearish idea and suggest continuation toward higher resistance.
For now, patience remains the edge. The level is important, but confirmation is more important than prediction.
Key Levels
🔹 Liquidity Zone: 1.1640+
🔹 Previous Week High: 1.1588
🔹 Support: 1.1560
🔹 Resistance: 1.1660
Trading Plan
Waiting for bearish lower-timeframe confirmation.
No confirmation = no trade.
Liquidity sweep followed by rejection would strengthen the bearish case.
Sustained acceptance above liquidity would favor continuation higher.
The recent bullish expansion reclaimed key structure and pushed the market back above support, bringing price into the vicinity of the previous week's high. This level often attracts liquidity, making it a natural target for both institutional and retail positioning.
While momentum remains bullish in the short term, the area between the previous week's high and the liquidity resting above presents a potential reaction zone. Rather than selling blindly into strength, I am looking for bearish confirmation on lower timeframes before considering any short exposure.
The reasoning is simple: markets frequently seek liquidity before reversing. If buyers continue to drive price higher and sweep the liquidity above, a rejection from that zone could provide the fuel for a corrective move back toward support. On the other hand, a clean break and acceptance above liquidity would invalidate the bearish idea and suggest continuation toward higher resistance.
For now, patience remains the edge. The level is important, but confirmation is more important than prediction.
Key Levels
🔹 Liquidity Zone: 1.1640+
🔹 Previous Week High: 1.1588
🔹 Support: 1.1560
🔹 Resistance: 1.1660
Trading Plan
Waiting for bearish lower-timeframe confirmation.
No confirmation = no trade.
Liquidity sweep followed by rejection would strengthen the bearish case.
Sustained acceptance above liquidity would favor continuation higher.
Trade ativo
Target hit. Setup closed. Now we wait for FOMC Wednesday before the next idea. Discipline doesn't stop after a win — that's actually when most traders lose it.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.