EUR/USD Outlook: Signs of Distribution After Liquidity Sweep

Key Highlights – EUR/USD

• EUR/USD remains bullish on higher timeframes but shows signs of exhaustion after the liquidity sweep into the 1.1900 premium zone.
• The 1.1850–1.1900 region acts as a key sell zone, favoring short positions on bearish rejection or loss of momentum.
• The 1.1685–1.1700 area is the primary value rebalancing level and first downside objective.
• A sustained breakdown opens the path toward 1.1510, the next major liquidity and structural support zone.

EURUSD printed a failed auction after attempting to break above the 1.2050 level, which acts as a key Point of Interest. As price entered this zone, a large cluster of resting sell orders was triggered, preventing further upside continuation.

Price also rejected the recent high around 1.1920, activating additional sell-side liquidity. Despite multiple attempts by buyers to sustain acceptance above these levels, momentum quickly faded, resulting in strong bearish displacement.

We anticipate this sell pressure to remain dominant, with downside objectives at 1.1720, followed by 1.1580 and 1.1500.