This daily EUR/USD chart shows that after a strong bullish impulse and a clear break in market structure, price has entered a distribution and corrective phase. The market pushed aggressively into a major supply zone around 1.20–1.21, but the failure to hold above this area and the sharp bearish reaction suggest the presence of heavy sell orders and liquidity absorption above the highs. This type of price behavior often signals the exhaustion of an emotional rally and the beginning of a market rebalancing phase.
From a technical perspective, the highlighted weekly order block (OB-W) and the demand zone below it are critical for defining the next directional move. As long as price holds above this support area, the broader structure can still be viewed as bullish with a corrective pullback, and the current decline may represent a healthy retracement within the larger trend. However, a clean breakdown below this zone would increase the probability of a deeper bearish move toward lower liquidity levels.
Overall, EUR/USD is at a key decision point, where the market’s reaction to the identified demand zones will determine whether the uptrend resumes or a more extended corrective phase unfolds. In such conditions, professional traders typically avoid emotional entries and instead wait for clear price action confirmation around key levels to define direction with controlled risk.
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