EUR/USD – 1H

1 199
EURUSD is trading at a discounted price area after a sharp impulsive sell-off, where price has swept sell-side liquidity (LA) and is now stabilizing near equal lows. The recent bearish leg looks exhaustive, suggesting downside momentum is weakening.

Price is currently holding above a key intraday demand / liquidity pocket, forming a base that favors a mean-reversion move rather than continuation lower.

Key Structure & Narrative

Sell-side liquidity taken below prior lows (LA)

Bearish impulse completed, followed by compression and basing

Discount zone respected, aligning with smart-money accumulation logic

Upside Scenario (Primary Bias)

A bullish displacement from current levels can open a path toward the prior H1 supply / imbalance zone (blue)

Acceptance above this zone may lead to a trend continuation toward the higher-timeframe premium area, with projected targets near the 1.2050–1.2080 region

Pullbacks during the move are expected to be corrective, not impulsive

Invalidation

Sustained acceptance below the liquidity sweep low would invalidate the bullish thesis and imply further downside exploration

📌 Bias: Bullish reversal from sell-side liquidity
📌 Framework: Liquidity sweep → accumulation → displacement → expansion
📌 Market State: Transition from markdown to re-accumulation

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