EURUSD - DAILY TIMEFRAME ANALYSIS Euro/US DollarFX:EURUSDenwemadufranklyn1989EURUSD – Daily Chart | Market Structure & Institutional Context Overview EURUSD has transitioned from a structured bullish expansion into a corrective phase. The prior impulse leg respected a rising trendline and multiple higher-low demand reloads, confirming institutional accumulation during November–December. However, recent price action signals a loss of bullish momentum and a shift into distribution and mean reversion. Market Structure Assessment The prior bullish leg (red trendline) represents aggressive momentum buying. Price has now broken below the steep momentum trendline, indicating exhaustion of short-term buyers. Current structure favors a corrective or consolidation phase, rather than immediate trend continuation. This behavior aligns with classic institutional practice: rapid expansion followed by profit-taking into key liquidity zones. Key Price Zones (Institutional Mapping) * Upper Supply / Distribution Zone (~1.1700 – 1.1730) * Area of rejection after the final bullish push * Likely institutional profit-taking and short initiation * Acts as resistance on any corrective bounce * Mid-Range Equilibrium Zone (~1.1600 – 1.1630) * Current price interaction * Represents fair value / balance * Market indecision likely here; not an optimal directional entry without confirmation * Primary Demand / Structural Support (~1.1480 – 1.1520) Major higher-timeframe demand Confluence with rising long-term trendline High-probability reaction zone for medium-term buyers Trendline & Slope Analysis The steep bullish trendline has failed → momentum exhaustion. The broader ascending trendline remains intact → higher-timeframe bullish structure still valid. This suggests correction within trend, not a confirmed trend reversal yet. * Bias & Scenarios Primary Scenario (Higher Probability): Price continues to rotate lower toward the lower demand zone (1.1500 area). Look for absorption, slowing momentum, and bullish rejection before considering longs. *. Alternative Scenario: If price reclaims and holds above 1.1630–1.1650, short-term relief rally toward supply is possible, but likely capped unless structure re-establishes higher highs. * Trading Implications Avoid chasing price mid-range; this is institutional balance territory. Best risk-to-reward setups will emerge: At demand, after confirmation Or at supply, on bearish continuation signals Patience is critical. The market is currently transitioning from expansion to re-pricing. * Conclusion EURUSD is no longer in impulsive buy mode. Institutions appear to be defending profits and rebalancing exposure, allowing price to rotate back into value. Until demand is tested or structure is reclaimed, the market favors controlled correction over trend continuation.