EUR/USD Smart Money Analysis & Trade Setup

Key Highlights – EUR/USD
  • EUR/USD is trading inside a key weekly point of interest near 1.14075.
  • Buy-side liquidity sits around 1.1430, while sell-side liquidity rests near 1.1280–1.1270.
  • A bearish setup needs rejection from the weekly POI and a break below 1.1380.
  • A bullish reversal needs a sell-side liquidity sweep followed by a confirmed change of character.

Market Overview

EUR/USD is trading around 1.14075 and currently sits inside a key weekly point of interest (POI) marked on the chart. This area is important because price has reached a zone where smart money often seeks liquidity before making the next directional move.

At this stage, the pair is moving near buy-side liquidity. If price sweeps the upper liquidity and fails to hold above the weekly POI, EUR/USD can start a bearish rotation toward the lower liquidity zone. However, if buyers defend the internal structure and price reclaims the upper range, the pair can continue toward the next resistance level.

EUR/USD weekly trading forecast based on smart money concept

Key Liquidity Zones

  • Buy-Side Liquidity (BSL): Around 1.1430, where short-position stop losses and breakout liquidity are likely resting.
  • Sell-Side Liquidity (SSL): Around 1.1280–1.1270, where long-position stop losses are likely placed below the recent lows.
  • Fair Value Gap (FVG): The area between 1.1300–1.1350 can act as a rebalancing zone if price pulls back from the current level.

Market Structure Analysis

The current price action shows EUR/USD trading near a sensitive weekly supply/POI zone. For a clean bearish continuation, sellers need to create displacement below the short-term structure. A break below 1.1380 can confirm that bearish order flow is taking control.

  • Break of Structure (BoS): A clean move below 1.1380 supports bearish continuation toward the lower liquidity pool.
  • Change of Character (ChoCh): A bullish shift becomes valid only if price sweeps sell-side liquidity and then reclaims the internal structure with strong displacement.
  • Order Block Area: The zone around 1.1350 can act as a short-term reaction area before the market decides its next direction.

Bearish Scenario: Liquidity Sweep From Weekly POI

The bearish idea remains valid if EUR/USD sweeps buy-side liquidity near 1.1430 and then rejects from the weekly POI. This would suggest that price collected liquidity above the range before shifting lower.

For confirmation, we want to see a clear rejection from the upper level, followed by a break below 1.1380. After that, a pullback into the broken structure or FVG can offer a cleaner short entry.

Bearish trade plan:

  • Entry: After rejection from 1.1430 and confirmation below 1.1380
  • First Target: 1.1350 — short-term order block / reaction zone
  • Second Target: 1.1300 — fair value gap and imbalance area
  • Final Target: 1.1280–1.1270 — sell-side liquidity zone
  • Invalidation: A strong hold above 1.1430 weakens the bearish setup

Bullish Scenario: Sell-Side Liquidity Sweep and Reversal

The bullish setup becomes stronger if price first drops into the sell-side liquidity zone near 1.1280–1.1270, sweeps liquidity, and then creates a clear change of character. This would show that the market collected liquidity below the range before shifting higher.

A bullish entry should not be taken only because price reaches the lower level. We need confirmation through displacement, structure reclaim, and a clean reaction from the demand area.

Bullish trade plan:

  • Entry: After SSL sweep near 1.1280–1.1270 and ChoCh confirmation
  • First Target: 1.1350 — internal structure and order block area
  • Second Target: 1.1400 — institutional liquidity zone
  • Final Target: 1.1430 — buy-side liquidity pool
  • Extended Target: 1.1500 — major resistance area
  • Risk Management: Stop loss should stay below the liquidity sweep low, not directly inside the liquidity zone

Final Outlook

EUR/USD is trading inside an important weekly POI, so the next move depends on how price reacts around the current liquidity areas. The clean bearish setup comes from a sweep above 1.1430 followed by a structural break below 1.1380. The clean bullish setup comes only after a sweep of 1.1280–1.1270 and a confirmed change of character.

In simple words, this is not the best area to chase the market. We wait for liquidity to be taken, then follow the confirmed structure. That is how we read the smart money footprint in a simple and practical way.

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Written by

Founder & Lead Market Analyst, PreferForex

Roy is the Founder & Lead Market Analyst at PreferForex, with nearly 13 years of experience in forex trading and market analysis. His work focuses on disciplined technical analysis, liquidity concepts, smart money concepts, institutional order flow, and risk-managed trading education.

Editorial Note: This analysis is based on technical price structure, liquidity zones, and current market conditions at the time of publication.

Risk Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Forex trading involves risk, and past analysis does not guarantee future results. Always trade with proper risk management.

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