EUR/USD on the 1-hour timeframe is currently executing a classic Smart Money Concepts (SMC) expansion pattern. Following a sweep of Buy-Side Liquidity and a trendline liquidity grab, price is turning bullish in the short term toward a higher-timeframe Supply Zone before anticipating a major bearish expansion.
Key Technical Elements
- Buy-Side Liquidity Sweep: Price broke above previous local highs around $1.1625–$1.1635, engineering liquidity before sweeping downward to clear out weak long stop losses.
- Fair Value Gap (FVG) Mitigation: The pair tapped into a significant 1-hour Fair Value Gap spanning between $1.1620 and $1.1640, using this imbalance zone as temporary support/resistance confluence.
- Trendline Liquidity Breakout: The descending liquidity trendline has been broken upward, signaling short-term bullish momentum toward higher overhead supply.
- Major Overhead Supply Zone: Positioned around $1.1655 – $1.1665, this key premium zone serves as the ideal institutional sell array for the primary bearish expansion.
Trade Setup Blueprint
- Short-Term Long (Target Sweep): Moving toward $1.1655–$1.1660 to complete the fill of the Supply Zone.
- Primary Bearish Setup (Supply Reaction):
- Sell Entry Zone: $1.1655 – $1.1665 (Supply Zone / Retest).
- Stop Loss: Placed strictly above $1.1675 (protecting against invalidation above the supply wick).
- Take Profit Target: Down at $1.1585 – $1.1590 (sweeping recent swing low liquidity).
MQL5 Community Discussion
Are you looking to play the immediate leg up into $1.1660, or waiting strictly for short confirmation inside the Supply Zone?
Disclaimer: This analysis is for educational and technical discussion purposes only and does not constitute financial advice.
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