Usman Salis
After weeks of steady decline, the EUR/USD pair may be preparing for a short-term upswing before resuming its downtrend. The euro could first rise into a key resistance zone near 1.1690, forming a classic liquidity grab setup, before turning sharply lower toward 1.1540.
Technical Roadmap and Key Levels
The chart illustrates a clear technical roadmap. Following a pronounced decline from the 1.1750 level, EUR/USD has entered a rounded recovery phase, gradually curving upward — a typical signal of short-term retracement. According to trader IB-forex, a Fair Value Gap (FVG) between 1.1670 and 1.1690 serves as a key resistance area where institutional orders are likely clustered.
Just above, an Order Block (OB) around 1.1720 adds another layer of supply pressure.
Projected Price Movement
If price manages to test this resistance band, the projection anticipates a reversal toward 1.1540, labeled as DOL (Daily Order Level) on the chart. This lower zone represents the main liquidity pool where prior demand emerged — a logical point for price reaccumulation after a pullback.
The visual forecast shows two distinct phases: an initial bullish leg toward the upper resistance (FVG zone), followed by a bearish continuation aligning with the broader downtrend structure visible on higher timeframes.
Market Context and Trading Implications
This setup reflects a liquidity sweep pattern, often used by institutional traders to target unfilled zones before resuming the dominant trend. Fundamentally, the movement coincides with weak Eurozone growth data and a stronger U.S. dollar outlook, both reinforcing bearish pressure on EUR/USD. The projection provides traders with a tactical scenario: a potential short-term rally offering sell-side opportunities near resistance. If confirmed by price rejection around 1.1690, the pair could resume its broader bearish trajectory, extending losses toward 1.1540 in the days ahead.
Usman Salis
