EUR/USD Tests Key Intraday Levels Near 1.1640

• EUR/USD is developing a high probability technical setup as price moves through major intraday reference levels. The market is reacting to a daily key level while liquidity patterns and fair value gaps begin to define short term direction. The chart shows EUR/USD trading around 1.1640, having moved decisively away from upper liquidity pools and toward a lower zone identified as a potential discount area.

• The image illustrates how EUR/USD initially swept liquidity above a short-term high, marked as SMT, before rejecting from the highlighted daily key level. Price then broke structure to the downside, moving into the intraday fair value gap. This shift reflects weakening momentum near the top of the range, consistent with the pullback shown in the candles following the liquidity sweep. The chart also marks the imbalance area (IFVG), suggesting that EUR/USD may continue to respond to inefficiencies in price as traders watch how the pair behaves around the 1.1640 region. The structure aligns with criteria often used to classify a setup as high probability.

The market is reacting to a daily key level while liquidity patterns and fair value gaps begin to define short term direction.

• Further downside movement on the chart shows EUR/USD approaching the DOL zone near 1.1635, a level often associated with liquidity accumulation during lower session ranges. The sequence of long-wick candles indicates volatility as price enters this region, highlighting uncertainty and the potential for reaction either through continuation or retracement. Market participants tracking EUR/USD price news have noted how the pair has repeatedly respected these intraday zones, providing additional context for the ongoing setup.

• This development matters because EUR/USD is one of the most actively traded currency pairs, and its reaction to liquidity zones and daily levels often influences broader FX market sentiment. With price positioned between a recently rejected key level and the lower discount zone, traders are watching closely to determine whether EUR/USD will stabilize, retrace, or extend its move. The structure shown in the chart underscores a moment where short term positioning may set the tone for upcoming sessions.

My Take: The 1.1640 zone is critical for EUR/USD right now. If price holds above 1.1635 and starts rejecting the discount area, we could see a bounce back toward the fair value gap. However, a clean break below would open the door for deeper downside testing.

Source: IB-forex