Peter Smith
The euro-dollar pair is showing signs of weakness as liquidity patterns suggest further downside ahead. Trading around 1.1600 after a sharp reversal from recent highs, EUR/USD may be setting up for a move toward 1.1400 if sellers maintain control.
Chart Analysis
In a recent tweet, SIRRILLAH outlined the daily chart tells a clear story. Buy-side liquidity above 1.1850 was recently swept, sparking a reversal that's brought the pair back down to current levels. An order block has formed near 1.1650—a zone that could serve as a retest area before another leg lower. If this resistance holds and bearish momentum continues, 1.1400 emerges as the next logical target where sell-side liquidity sits waiting.
Technical Picture
Resistance stands firm at 1.1850 where liquidity was taken, while 1.1650 acts as a near-term cap. Support comes into view at 1.1400. The structure of lower highs and lower lows backs the bearish case, and fundamentals aren't helping the euro either. The dollar's strength from expectations of higher-for-longer rates contrasts with eurozone growth concerns and trade uncertainty weighing on the single currency.
The path looks downward unless bulls can push back above 1.1700. A break under 1.1550 could speed things up toward 1.1400, while reclaiming 1.1700 would flip the script. For now, the liquidity map and market structure suggest sellers have the upper hand, and the euro might need to test lower ground before finding its footing.
Peter Smith
