FX.co ★ Khurram78 | EUR/USD

The EUR/USD market typically doesn't immediately reverse sharply, but rather goes through a slowdown phase, and that's what's happening now. Repeated rejections below 1.17800 suggest sellers are running out of steam. When the price touched that level several times but failed to establish a new low, I read it as a sign of large buyers quietly absorbing supply. So this change in direction feels more natural, rather than just a momentary technical bounce. From a price action perspective, the bullish engulfing pattern on the daily chart is indeed a valid signal of a sentiment reversal, especially when it appears after a fairly aggressive downward push. The candlestick completely engulfed the previous body, indicating considerable buying pressure. If we examine the market structure, we can now see higher lows slowly forming, shifting the previously dominant lower lows. In terms of supply and demand, the 1.17800–1.18000 area can be categorized as a demand zone because it originated from a long-standing consolidation base before the previous rally. Meanwhile, the 1.19000 resistance you mentioned, in my opinion, coincides with the daily supply and the previous strong reaction area.

If calculated using Fibonacci from the last swing high to the 1.17800 swing low, the 61.8% retracement level is also close to 1.1890–1.1910, making the confluence even more solid as a logical target. I observe an equal low around 1.17800 that was briefly swept away, followed by a strong price rejection. This is often called a liquidity grab, where the market clears stop-losses before moving in the opposite direction. After the liquidity below is swept away, it's natural for the price to seek buy-side liquidity above, which is located in the 1.1880–1.1900 area. The weekly pivot, likely close to the current price, also supports an accumulation scenario, as long as the price remains above the pivot, the bias is bullish. I interpret the sideways pattern you mentioned as a re-accumulation phase, not directional indecision. Typically, after this phase is over, a fairly rapid impulse emerges, often surprising traders who wait too long for full confirmation. As for strategy, I personally don't chase the price during consolidation, but instead wait for two scenarios: buy on a pullback to demand or buy on a valid breakout above the daily range. This approach helps achieve a healthier risk-to-risk ratio while capitalizing on the emerging bullish structure. As long as 1.17800 isn't decisively broken by the daily close, I still view corrections as entry opportunities, not reasons to panic. I believe this strong support-based trading plan is quite rational and aligns with the EUR/USD's character, which often moves gradually before rallies