Usman Salis
The EUR/USD pair has reached a crucial crossroads, hitting a major resistance area where technical confluences are lining up for a potential bearish reversal. Trading within a red-hot zone that combines an Order Block (OB) and Fair Value Gap (FVG), the pair faces its biggest test in recent sessions.
EUR/USD Price Action Reveals Classic Trap Setup
After sweeping liquidity above recent highs in what appears to be a textbook manipulation move, EUR/USD has stalled right at the supply zone ceiling. This type of price behavior—grabbing stops above key levels before reversing—often signals that bigger players are setting retail traders up for disappointment.
The 4-hour chart from August 7, 2025, shows the pair struggling to push through this critical resistance area. What makes this zone particularly dangerous for bulls is that it previously triggered a significant sell-off, suggesting institutional sellers are still lurking at these levels.
Technical Confluence Points to Bearish Reversal
The current setup screams caution for anyone betting on further upside. With the Fair Value Gap sitting right above the Order Block, EUR/USD faces a double layer of resistance that could prove insurmountable. These zones typically act like magnets for price—drawing it in before spitting it back out with force.
Unless we see a convincing break and close above this red zone, the smart money appears positioned for a rejection play. The outlined path suggests EUR/USD could be setting up for a sharp reversal that targets the SSL (Sell-Side Liquidity) level below, where long positions are likely sitting vulnerable.
Market structure is hinting at a potential fake-out scenario where recent buyers get squeezed out as price fails to maintain momentum above key resistance. If this zone holds firm, we could witness a swift journey back toward support levels that seemed distant just days ago.
Usman Salis
