EURUSD Traders Aren't Ready For What's Next

Why It Matters

Understanding whether the euro’s rally is genuine or a temporary correction helps traders manage risk and position size, potentially avoiding losses if a downtrend emerges.

Key Takeaways

• Euro rally may be short‑term mitigation, not sustained uptrend.
• Smart Money Concepts show bullish break of structure above key level.
• Recent change of character suggests potential shift to downtrend.
• Traders should wait for lower‑timeframe confirmation before shorting.
• Political bias can cloud chart analysis; focus on price action.

Summary

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.

Original Description

I just launched a free 3-day SMC strategy course that walks through exactly how I trade structure, liquidity, and entries as a full-time trader.

You can access it here: https://access.dailypriceaction.com/smc-strategy

In this video, I break down the current EURUSD price action and explain why traders should be cautious about chasing the euro higher in April.

Using Smart Money Concepts (SMC) and daily market structure, I walk through the key break of structure (BOS) and change of character (CHoCH) that recently formed on the daily timeframe.

Although EURUSD has rallied over the past couple of weeks, this move may simply be a retracement into a prior imbalance and premium zone, rather than the start of a sustained bullish trend.

In this video I cover:

• The EURUSD rally and why it may only be mitigating previous imbalance

• The daily SMC change of character that shifted market structure

• Why the current move could form a lower high in the coming days

• The premium area where I’m watching for a potential reversal

• The 1-hour confirmation I need before considering shorts

• Why forex traders must separate politics and opinions from what the chart is actually showing

Right now the key is patience.

EURUSD is trading in premium, and if price begins to form structure in this region, it could set up a potential reversal and continuation lower. But confirmation always comes first.

If you want to learn the exact SMC forex strategy I use to trade full-time, check out the free training linked in the description and pinned comment.

#forex #eurusd #smc #smartmoneyconcepts #priceaction #forextrading

CHAPTERS

0:00 EURUSD Turning Point Warning

0:43 Daily Structure And Bullish BOS

2:35 Confirmed Daily Change Of Character

4:54 Why This Rally Could Be Relief Into Imbalance

6:09 The Premium Area To Watch For A Reversal

9:03 What 1-Hour Confirmation Needs To Look Like

12:48 What Invalidates The Bearish EURUSD Idea

SMC LESSONS

BoS and CHoCH made simple

https://youtu.be/FE1bgD9N6DM

Steal my liquidity sweep entry model (beginner-friendly)

https://youtu.be/XH4TAoLCFBk

Premium, discount, and OTE explained

https://youtu.be/UWrvexqN3w8

Disclaimer: This video is for educational purposes only and is not financial advice. Trading forex, crypto, and other markets involves risk and may not be suitable for all investors. Always do your own research and never risk money you can’t afford to lose. I am not responsible for any losses you may incur from acting on the information in this video.