Peter Smith
● MR | EUR laid out a cautious but clearly bearish view on EUR/USD for the coming days. "I'm still bearish on EUR this coming week," the analyst noted, adding they'll "wait for Monday to play out, then look for a good setup on Tuesday." It's a measured approach—waiting for confirmation before jumping into new short positions rather than chasing the move.
● The main challenge for traders right now is the euro's persistent weakness against a stronger U.S. dollar, fueled by expectations of a hawkish Federal Reserve and softer economic data coming out of the eurozone. The chart shows a clear rejection from an order block (OB) zone near the 1.17 level, suggesting any bounce attempts are likely to stall below that resistance. That said, early-week volatility could throw off some fake breakouts, which makes timing tricky for anyone looking to enter too soon.
● From a broader economic perspective, if the euro keeps sliding, it could shake up corporate hedging strategies and shift Europe's trade dynamics. Exporters might catch a short-term break from a weaker currency, but rising import costs could put pressure on inflation and squeeze household budgets. Some analysts are pointing to coordinated fiscal policy and targeted stimulus as potential ways to support demand without undermining the credibility of central bank policy.
● Looking at the chart itself, the structure is clearly tilted downward. There are liquidity zones (LQ) marked around 1.1850 on the upside and 1.1400 below. The recent internal range liquidity (IRL) setup near 1.16 suggests the pair is consolidating before potentially resuming its decline. A clean break below 1.1550 would confirm the next leg down, with the external range liquidity target sitting around 1.14.
● According to MR | EUR, this coming week will be critical for direction, with Tuesday potentially offering "a good setup" for a downside trade. The analysis fits with the broader technical picture—weakening bullish momentum and a steady bearish tilt in the EUR/USD trend.
Peter Smith
