Peter Smith
The euro-dollar pair has been showing mixed signals lately, with traders closely watching key technical levels that could shape the near-term direction. After bouncing from recent lows, EUR/USD now finds itself at a make-or-break moment that has many analysts leaning bearish.
EUR/USD Hits Critical Resistance After Recent Rally
The EUR/USD pair looks pretty tired after its recent climb from the 1.1391 lows. Right now, it's trading around 1.15874, but there's a really important resistance wall building up at 1.16847. This level is getting attention because it lines up with what traders call the H4 Fair Value Gap and Daily IRL - basically fancy terms for areas where big money likes to step in.
What's interesting is that there's also an unmitigated zone of bullish candles sitting up near 1.17435. If the pair can't punch through these levels, we might see sellers jump in pretty aggressively and push things back down.
Bearish Setup Points to 1.1391 Target
The technical picture is painting a bearish story for EUR/USD while it stays below that 1.1684 level. The downside target that's catching traders' attention is 1.13913, which matches up with what's called a DOL (Draw on Liquidity) zone - essentially where institutional players are likely hunting for liquidity.
The current setup suggests we might be seeing a Smart Money Trap near the recent highs, which basically means the upward move could just be a fake-out before the real move lower begins. This kind of action is pretty common when big players want to shake out weak hands before making their real move.
Peter Smith
