Saad Ullah
The EUR/USD pair finds itself at a pivotal crossroads as bears tighten their grip around crucial resistance zones. With multiple technical factors converging to create a perfect storm of selling pressure, the world's most traded currency pair is displaying clear signs of vulnerability. Market participants are watching closely as price action unfolds within a high-probability reversal zone that could determine the pair's direction for weeks to come.
Order Block Rejection Signals Deeper Decline Ahead
Current price action within the highlighted order block and fair value gap zone is painting a concerning picture for EUR/USD bulls. The recent market structure shift has left the pair exposed to aggressive selling, with institutional-level resistance proving too strong to overcome.
The failure to sustain momentum above the 1.09-1.10 handle suggests that sellers are firmly in control, positioning for what could become a prolonged bearish campaign. Trader @sirrillahfx recently highlighted how this technical setup mirrors classic distribution patterns that often precede significant downward moves.
Smart money appears to be using any strength as an opportunity to add short positions.
Liquidity Hunt Could Trigger Explosive Move Lower
All eyes are now focused on the sell-side liquidity pools sitting below current market levels. These zones represent critical support areas where stop losses and buy orders are clustered, making them prime targets for institutional players looking to fuel the next leg down. If EUR/USD breaks decisively through these levels, it could unleash a cascade of selling pressure that pushes the pair toward much lower territory.
The technical picture remains ominous, with momentum indicators failing to show any signs of bullish divergence. Unless we see an immediate and convincing reclaim of key resistance levels, EUR/USD appears destined for a test of major support zones that haven't been visited in months.
Saad Ullah
