EURUSD — Distribution Phase | Liquidity Engineering Before ExpanEuro/US DollarFX:EURUSDenwemadufranklyn1989Price is currently trading within a well-defined range following a bearish impulse, indicating a rebalancing phase rather than true accumulation. From a structural standpoint, the market remains bearish on the higher timeframe, with price compressing between: *1.1600 – 1.1650 (Supply / Distribution Zone) *1.1400 – 1.1450 (Liquidity Base / Weak Demand) This range is not random — it reflects institutional positioning, where liquidity is being engineered on both sides of the market. COT data supports this narrative: *Non-commercial positioning has collapsed to neutral levels (loss of bullish conviction) *Open interest is declining, indicating reduced participation *Commercials are reducing shorts, not aggressively building longs This combination suggests a transition/reset phase, not a trend continuation environment. *Expected Behavior Price is likely to remain range-bound in the short term, creating inducement through: Equal highs (buy-side liquidity) Equal lows (sell-side liquidity) The higher probability outcome remains: Liquidity sweep → rejection → continuation in line with prior bearish trend Key Levels *Sell Zone: 1.1600 – 1.1650 *Breakdown Level: 1.1400 *Outlook Unless price delivers a strong break and hold above supply with renewed participation, the market favors: Distribution → downside expansion Note: Patience is critical in this phase — wait for confirmation after liquidity is taken, not before.