Usman Salis
EUR/USD is hitting a decisive moment as price taps into the supply zone that has repeatedly rejected bullish attempts. With the pair testing 1.15800 and showing exhaustion, traders are watching for a possible momentum shift. The setup aligns with expectations for a move into this zone before a potential decline.
EUR/USD Reaches a Critical Reversal Area
EUR/USD has climbed into a clearly defined resistance level around 1.15800—a zone that previously acted as a ceiling. According to B Trader, who anticipated this move into the supply zone, the chart shows this level marked with an "X," illustrating prior rejections. Despite a recent corrective rally, the structure remains bearish.
The market still prints lower highs and lower lows, while the latest push appears corrective rather than impulsive. Price has tapped the same resistance without gaining strength, and the projected downward curve reflects expectations that EURUSD may struggle to hold gains here.
Technical Breakdown: Structure and Liquidity
Repeated rejections around 1.15800 show why the pair is vulnerable—each test has failed to establish bullish continuation. A major liquidity target sits near 1.14000–1.14200, marked on the chart with a horizontal line and dollar sign. This untapped zone could attract price if downward momentum resumes. Two "X" markers show minor supply zones where price failed to reclaim the earlier high, reinforcing the bearish case. The current rally lacks strong candles, volume expansion, or structural shifts, suggesting buyers may be losing control.
Macro Landscape Favors Dollar Strength
Fundamentals lean toward USD. The Fed maintains a more restrictive tone than the ECB, while U.S. data remains stronger than Eurozone metrics. Geopolitical tensions and risk-off flows increase USD demand, and the Eurozone shows weak growth with soft inflation. These drivers align with the technical downside expectation.
What Traders Should Watch Next
Key levels for EUR/USD include: reaction around 1.15800, price behavior near 1.15000 as a pivot, momentum signals on 1H and 4H timeframes, direction toward the liquidity pocket below 1.14200, and upcoming U.S. CPI, NFP, and Fed communications. A failure to hold minor supports could accelerate EUR/USD's move toward the liquidity pool.
Usman Salis
