EURUSD Hits Resistance After Sharp Rebound EURUSD Hits Resistance After Sharp Rebound — Correction or Just a Liquidity Grab?
EURUSD on the H1 timeframe remains within a broader bearish structure, with price continuing to trade below the declining moving averages that have consistently acted as dynamic resistance. The overall market context reflects sustained selling pressure, as the sequence of lower highs and lower lows remains intact despite short-term volatility.
The recent sharp bullish impulse from the lower liquidity range appears to be a liquidity-driven rebound rather than a confirmed structural reversal. Price aggressively swept sell-side liquidity near the 1.1620 area before rebounding, a move often associated with stop-hunting and short covering. However, this recovery has now carried price directly back into a clearly defined resistance zone, where prior selling activity and the descending EMA converge.
At this resistance area, bullish momentum has begun to stall, suggesting that buyers are encountering active supply. Without sustained acceptance above this zone, the current move is best interpreted as a corrective pullback within a bearish trend. In this context, a rejection from resistance could lead to renewed downside pressure, with price rotating back toward the lower liquidity range to retest the recent lows.
If sellers regain control, a continuation toward the 1.1620 support area remains the higher-probability scenario, aligning with the prevailing trend and the broader liquidity framework. Such a move would confirm that the rebound was corrective rather than the start of a trend shift.
Alternatively, only a clean break and sustained acceptance above the resistance zone and the declining moving averages would invalidate the bearish continuation outlook. Until that occurs, EURUSD remains technically bearish, with the market likely using rallies into resistance as opportunities for distribution rather than accumulation.
