EUR/USD Price Forecast: Liquidity Zone Hints at Upside Move
- In a recent technical update, trader KIPKOECH BRIAN shared a focused EUR/USD outlook, noting that the pair may be entering a phase of recovery following a controlled liquidity sweep. The 4-hour chart he posted highlights a clear liquidity structure, with buy-side liquidity positioned near the recent swing high and key support levels forming below current price action.
- The chart suggests that EUR/USD has completed a downward liquidity grab and is now stabilizing at a zone where institutional buying interest often returns. Price appears to be reacting from the lower support band, hinting at the start of a bullish retracement phase toward the upper liquidity target.
- The proposal and risks within this setup revolve around how the market handles short-term volatility around support. A confirmed move higher could open room toward 1.085–1.09, but a deeper liquidity hunt below the recent lows could invalidate this short-term bullish view. Traders are advised to remain cautious of false reversals, especially given thin liquidity conditions ahead of key economic announcements.
- From a financial and macro perspective, the euro continues to face mixed pressures. The European Central Bank’s dovish tone contrasts with the Federal Reserve’s firmer stance, keeping the dollar relatively strong. However, the market may already be pricing in these divergences, allowing EUR/USD to find equilibrium before the next policy shift.
- In the broader context, this setup reflects a recurring liquidity cycle seen across major forex pairs — a decline toward resting orders, followed by a potential expansion toward upper liquidity levels. The curved projection on the chart visually reinforces this pattern, suggesting that smart money accumulation may already be underway.
- “The market is tapping into key demand before targeting upper liquidity zones,” capturing the trader’s tactical perspective.
- If current support holds, EUR/USD could soon begin a recovery phase toward the buy-side liquidity marked on the chart — a move that would confirm this setup as one of the more technically significant turning points in recent euro-dollar trading.
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