Justin Bennett (Daily Price Action)

EURUSD Traders Aren't Ready For What's Next

In this video, trader Justin Bennett cautions that the recent EUR/USD rally may be a temporary correction rather than a durable uptrend, using Smart Money Concepts (SMC) to dissect the price action. He highlights a clear break of structure on the daily chart that kept the market bullish, but notes a subsequent change of character—a bearish shift not yet a short signal—indicating a possible transition to a downtrend. Bennett maps the euro’s recent moves, pinpointing an external low that must hold for bullishness, and identifies a large imbalance created by a gap down earlier in the month. The euro is now trading in a premium zone, and the market appears to be mitigating that imbalance, which often precedes a reversal. He stresses the need for a lower‑timeframe change of character—such as a break of structure on the 1‑hour chart—before taking short positions. He underscores that emotional biases, like anti‑Trump sentiment or Middle‑East tensions, can distort traders’ views, urging focus on the chart’s objective signals. Notable remarks include, “We had a very clear BOS on the daily, we had a change of character on the daily,” and the reminder that “the chart is telling me what to trade, not my opinions.” The takeaway for market participants is to remain cautious: monitor the identified price area for a lower high or bearish break on shorter timeframes, and avoid chasing shorts until confirmation appears. A breakout above the current high would invalidate the bearish outlook, while a confirmed reversal could signal a new downtrend, reshaping euro‑dollar positioning.