FX.co ★ Jackroay | EUR/USD

EUR/USD H1 Technical Analysis Liquidity, Market Structure Shift, and Smart Money Perspective Indicators and Tools Used on the Chart The chart is based on Smart Money Concepts (SMC) and liquidity analysis rather than traditional indicators. The primary tools visible include BSR Liquidity Zone, Adderblock (Seller Order Block), Fair Value Gap (FVG), Market Structure Shift (MSS), Liquidity Sweep, Equal Highs, Buy-Side Liquidity Zone, High and Low Key Levels, and Volume Histogram. Together, these tools help identify institutional activity, probable reversal zones, liquidity targets, and high-probability trading opportunities. I prefer combining these concepts because they provide a clearer understanding of where large market participants are likely entering or exiting positions instead of relying only on lagging indicators. BSR Liquidity Zone Analysis The upper purple BSR Liquidity Zone around 1.1480–1.1487 is the most significant resistance area on the chart. Price recently rallied into this zone, swept liquidity above previous highs, and immediately faced selling pressure. This behavior suggests institutions collected buy-side liquidity before distributing positions. I consider this area a premium price zone where sellers may continue defending the market unless a strong bullish breakout occurs with sustained volume. Multiple rejections from this region confirm that the zone remains technically important and should be monitored for future reactions. Adderblock (Seller Order Block) The red Adderblock positioned below the liquidity zone highlights an institutional selling area. Price repeatedly respected this block before eventually breaking through and later retesting it as support. This transition demonstrates how market structure evolves after liquidity has been captured. I believe this order block continues to influence price because the market is consolidating around it instead of producing an impulsive continuation. A decisive move above the block would strengthen bullish momentum, while rejection from this level could trigger another bearish correction toward lower liquidity zones. Market Structure Shift (MSS) and Fair Value Gap (FVG) The Market Structure Shift near the lower section of the chart marks the point where bearish momentum ended and buyers regained control. Following this shift, price aggressively moved higher, leaving behind a Fair Value Gap that acted as an imbalance. The market later revisited this FVG, filled a significant portion of the imbalance, and resumed its upward movement. This sequence reflects a classic Smart Money accumulation pattern. I often look for this combination because an MSS followed by an FVG retracement provides high-quality continuation opportunities while maintaining favorable risk-to-reward conditions. Liquidity Sweep, Equal Highs, and Volume Perspective The chart contains two notable liquidity sweeps. One occurred near the lower lows before the bullish reversal, while another appeared close to previous highs where sellers entered aggressively. These liquidity grabs indicate that institutions targeted stop-loss orders before initiating larger directional moves. The Equal Highs around the Adderblock also acted as an attractive liquidity pool, eventually encouraging price to revisit that region. Volume spikes coincide with several major swings, confirming increased institutional participation during breakout and reversal phases. I always pay attention to these volume increases because they help validate whether a move is supported by genuine market interest rather than temporary volatility. Overall Market Outlook The current EUR/USD H1 structure remains cautiously bullish while trading above the major Buy-Side Liquidity Zone near 1.1362, but price is also struggling beneath the powerful BSR Liquidity Zone around 1.1487. This creates a balanced environment where both buyers and sellers have meaningful technical arguments. As long as price continues holding above recent support and respects the reclaimed Adderblock, buyers retain a slight advantage. However, failure to maintain these levels could invite another decline toward the Fair Value Gap and lower liquidity zones. I would wait for either a confirmed breakout above 1.1487 with strong momentum or a bearish rejection from the liquidity zone before committing to a directional trade. Overall, the chart reflects disciplined institutional behavior, with liquidity engineering, market structure shifts, and imbalance mitigation working together to create a technically rich trading environment where patience and confirmation remain more valuable than early entries.