EUR/USD Bearish Momentum | Liquidity Sweep Signals Reversal

EUR/USD has reached a key resistance zone after a strong bullish expansion, where price appears to have swept liquidity above previous highs before showing signs of rejection. The recent reaction around the highlighted weak high suggests that buyers may be losing momentum while sellers begin defending the premium price area. As long as price remains below this resistance, the market favors a bearish correction toward lower demand zones. 📉

The regression trend continues to guide price action, with candles respecting the bearish slope and momentum remaining below the regression median. This structure suggests that the recent rally may be a liquidity grab rather than the beginning of a sustained bullish trend. Traders should wait for bearish confirmation, such as a rejection candle, bearish engulfing pattern, or break of short-term support before considering short positions.

Bearish scenario 📊

If sellers maintain control below the liquidity swing and weak high, EUR/USD could continue its decline toward the first support around 1.1498-1.1490. A clean break below this zone would expose the next downside objective near 1.1475. If bearish momentum strengthens with increased selling volume, price could extend toward the highlighted target area around 1.1450, where buyers may attempt to re-enter the market.

Bullish scenario 📈

If buyers successfully reclaim the resistance zone with a strong candle close above the recent weak high, the bearish outlook would weaken significantly. Sustained trading above 1.1545-1.1555 could trigger fresh buying pressure and open the door for a continuation toward 1.1570 and potentially 1.1600. Bulls should wait for a confirmed breakout rather than entering during consolidation beneath resistance.

Target zones 🎯

• Bearish Target 1: 1.1498-1.1490
• Bearish Target 2: 1.1475
• Bearish Target 3: 1.1450

• Bullish Target 1: 1.1555
• Bullish Target 2: 1.1570
• Bullish Target 3: 1.1600

Trading perspective 💡

The current market structure suggests EUR/USD is trading in a premium pricing area after completing a liquidity sweep. This increases the probability of a corrective move if sellers continue defending resistance. Patience is essential, as confirmation through price action and volume will provide higher-probability entries. Traders should avoid chasing the market and instead focus on disciplined execution with well-defined risk management.

Key points ✅

• Liquidity sweep has formed near the recent swing high.
• Price continues to respect the regression trend.
• Bearish momentum remains intact while below resistance.
• The highlighted resistance zone is the key decision area.
• A confirmed break below support could accelerate the bearish move toward 1.1450.
• A strong breakout above the weak high would invalidate the immediate bearish setup.
• Always use proper stop-loss placement and risk only a small percentage of capital per trade.
• Monitor market sentiment, economic news, and volume for additional confirmation before entering any position.