EURUSD Weekly TF Analysis 💡🧠✍️

This analysis on the weekly timeframe for the EUR/USD pair provides insight into market structure shifts (MSS), imbalance areas, and key liquidity levels. It highlights potential reversal zones and opportunities for strategic long positions based on Smart Money Concept (SMC) principles.

Market Analysis

1. Current Market Structure:
   • The EUR/USD pair has been in a clear downtrend since early 2022.
   • A significant Market Structure Shift (MSS) occurred in late 2022, marking a potential bottom and initiating a bullish move.
2. Key Levels and Zones:
   • Order Block (OB): Identified as the starting point of a previous bullish move, represented in the green zone.
   • 50% Fair Value Gap (FVG): Highlighted in the grey shaded area. Price may react around this zone, offering a high-probability area for accumulation before a bullish continuation.
3. Liquidity Levels:
   • SSL: Sell-side liquidity has been swept, indicating a liquidity grab.
   • $$$: Mid-term buy-side liquidity still remains above, acting as a target for future bullish moves.
4. Fair Value Gap (FVG):
   • The price is likely to retrace and fill the imbalance (FVG) before continuing upward.
   • A 50% retracement of the FVG serves as a significant area for entry.

Trade Plan

1. Entry Zone:
   • Wait for price to enter the 50% FVG area (around 1.0000 – 1.0200).
   • Look for bullish confirmation such as a smaller timeframe shift in market structure (e.g., 4H or Daily TF).
2. Stop Loss (SL):
   • Place the SL below the Order Block (OB) and recent liquidity sweep, ensuring safety from stop hunts.
3. Target (TP):
   • Short-term Target: 1.0600 – 1.0700.
   • Long-term Target: Buy-side liquidity above (1.1200 – 1.1400).
4. Risk-Reward Ratio (RRR):
   • Maintain a minimum 1:3 RRR for this setup to ensure strong trade efficiency.

Conclusion

The current price action on the weekly timeframe signals a potential bullish reversal. If price retraces into the identified FVG zone and shows bullish confirmation, this setup offers an excellent long opportunity. Targets align with both short-term and long-term liquidity areas, providing multiple profit-taking options.