Saad Ullah
EUR/USD has hit a make-or-break moment as it trades around 1.1717 on the 4-hour timeframe. The pair is sitting right at a crucial imbalance zone (IFVG) where both buyers and sellers are gearing up for what could be a significant move. This isn't just another consolidation – the reaction here could set the tone for the coming weeks. According to @traderkoray, how price behaves in this IFVG zone will be the key to understanding where the market wants to go next.
EUR/USD Technical Setup
Looking at the 4-hour chart, EUR/USD has been caught between some important levels that tell a story about where the smart money is positioned:
- Resistance levels: 1.1750 (short-term hurdle) and 1.1850 (major buy-side liquidity)
- Support levels: 1.1650 (intermediate floor) and 1.1400 (major sell-side liquidity)
The recent bounce from support shows there's still some bullish interest floating around, especially if price can stay above this IFVG area. The chart paints two clear pictures: either we see a push higher into that juicy liquidity above 1.1800, or we get a nasty rejection that sends the pair tumbling toward 1.1550–1.1500.
Macro Drivers Behind EUR/USD
It's not just about the technicals here – the bigger picture is creating some serious volatility. U.S. dollar moves have been all over the place thanks to mixed economic data and everyone trying to figure out what the Fed will do next. Meanwhile, the eurozone isn't exactly inspiring confidence with weak growth numbers and the ECB playing it safe with their commentary. Add in the constant liquidity hunting where institutional orders sit, and you get these sharp spikes and wicks we're seeing on the chart.
Trading Scenarios to Watch
If EUR/USD can hold its ground around the IFVG zone near 1.1700, bulls will be eyeing 1.1750 first, then that sweet spot between 1.1800–1.1850 where the big buy-side liquidity is waiting. Breaking above 1.1850 would really get the bulls excited and could fuel more upside momentum.
On the flip side, if 1.1700 gives way, sellers will likely jump in targeting 1.1650 as the first stop. If the selling pressure builds, we could see deeper drops toward 1.1550 and potentially all the way down to 1.1400 where the major sell-side liquidity sits.
Saad Ullah
