Saad Ullah
⬤ EUR/USD is facing renewed downside pressure after the pair got smacked down from a higher-timeframe key level. The currency has shifted into a bearish intraday bias, showing weakness right after tapping into a major premium zone. The chart shows an aggressive push higher followed by a rejection wick—a sign that buyers may have run out of steam at the top.
⬤ The setup carries some structural risk for traders. With EUR/USD now trading below the rejected level, the danger is that price could keep sliding lower if the current consolidation can't reclaim the zone above. That opens the door for liquidity sweeps or deeper pullbacks toward the next downside target marked on the chart. Long positions entered above the IFVG region could get trapped with poor risk-reward if there's no bullish reaction.
⬤ The bearish case gets stronger when you look at the intraday fair value gap (IFVG). The recent move up might have been an overextension rather than the start of a new uptrend. Price is expected to retest the IFVG before potentially continuing lower. Combined with that strong rejection candle from the upper boundary, the short-term outlook leans bearish.
⬤ For traders, what matters now is how EUR/USD behaves around the IFVG. If it stays below that higher-timeframe rejection zone, the intraday structure favors more downside—reflecting weaker demand and repositioning by market participants. The reaction at the fair value gap will determine whether the bearish move continues or if the pair tries to claw back some ground. Either way, caution is warranted for anyone thinking about going long near these levels.
Saad Ullah
