EURUSD – Daily Chart | Potential Premium Short ScenarioEUR/USDOANDA:EURUSDSelena_FX_TraderMarket Structure Overview The daily structure previously showed bullish continuation with multiple Breaks of Structure (BOS), confirming higher-timeframe strength during the mid-2025 to early-2026 period. However, after the impulsive rally toward the 1.20 area, price began to show signs of distribution and momentum slowdown. The recent decline suggests that the market is now moving toward discount pricing relative to the previous bullish leg. Currently price is trading near 1.1616, positioned between: Higher-timeframe resistance (Daily FVG + Order Block) around 1.1700–1.1800 Daily demand / Order Block around 1.1450–1.1500 This creates a range where the market may seek liquidity before choosing the next direction. Premium Short Scenario (Educational Setup) If price retraces higher into the Daily Fair Value Gap combined with a potential Order Block, the area may act as a premium pricing zone where selling pressure could appear. Key resistance zone 1.1700 – 1.1800 Why this zone matters: • Daily Fair Value Gap (inefficiency) • Potential Order Block / supply area • Previous distribution zone • Premium level relative to current market structure Markets often revisit imbalance zones before continuing a broader move. Possible Price Development One possible scenario based on current structure: Price may continue lower toward the daily demand zone (1.1450 area) to fill liquidity. A reaction from that demand could cause a retracement upward. If price revisits the 1.1700–1.1800 FVG zone, sellers may attempt to defend that level. From there, the market could rotate back toward equilibrium or revisit lower liquidity. Potential Downside Liquidity Areas If a bearish reaction develops from the premium zone, nearby areas that may attract price include: Area 1 1.1610 Recent support / equilibrium level. Area 2 1.1500 Daily demand zone. Area 3 1.1450 Higher-timeframe Order Block. These zones correspond with previous liquidity pools and inefficiencies visible on the chart. Confirmation Factors Traders Often Watch Rather than anticipating a reversal, some traders wait for confirmation such as: • Rejection wicks within the FVG zone • Lower-timeframe structure shift • Bearish displacement candles • Retest of imbalance acting as resistance These elements can help validate whether the zone is respected. Alternative Scenario (Bullish) If price breaks and holds above 1.1800, the bearish idea may weaken. In that case, the market could continue seeking liquidity toward the 1.2000 psychological region, which aligns with previous highs.