EUR/USD Daily Chart Analysis – Smart Money Perspective

Current Market Bias: Bearish

The price action indicates that the overall structure remains bearish, with lower highs and lower lows being formed. Despite recent bullish retracements, the price has failed to break key resistance levels, signaling that sellers remain in control.

Key Areas on the Chart:
1. Order Block (OB) & Fair Value Gap (FVG) Zone:
• The highlighted gray zone represents an order block (OB), which is a supply area where institutions likely placed large sell orders.
• The presence of a fair value gap (FVG) within this zone indicates an inefficiency in price, making it a strong area for potential reversals.
• Price recently tapped into this area and reacted downward, confirming bearish momentum.
2. Liquidity Grab Possibility:
• The lower dashed line represents a previous swing low, where liquidity (stop-loss orders) is likely resting.
• Smart Money often seeks liquidity before reversing or continuing trends.
• There is a high probability that price will sweep this low before any potential bullish move occurs.
3. Market Structure Shift for a Bullish Setup:
• Although the bias remains bearish, a market structure shift (MSS) is required before considering any long (buy) setups.
• A key level to watch is 1.05351, where a break above could signal a reversal.
• Until then, selling pressure is likely to dominate.

Conclusion & Trade Plan:
• Bearish bias remains active.
• Price might sweep the previous low to grab liquidity before a potential reversal.
• A confirmed market structure shift above 1.05351 is required for bullish confirmation.
• Until that happens, traders should focus on shorting opportunities near supply zones or order blocks.

Final Thought:

By following Smart Money Concepts (SMC), traders can align their trades with institutional movements. Patience is key—wait for confirmations before entering positions. Keep an eye on liquidity sweeps and market structure shifts for the best trade setups.