EUR/USD - Critical Decision Zone! Will Price Hold or Break?
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The EUR/USD is currently trading around 1.045, sitting within a fair value gap (FVG). This level is a major point of interest, and the market's reaction here could dictate the next significant move.
Key Scenarios to Watch: 📉 Bearish Breakdown:
If price fails to hold this FVG and we get a strong candle close below it, this could confirm bearish momentum.
A breakdown from this level would create a high-probability short opportunity, with the next logical downside target being the golden pocket (marked as "Target").
This area aligns with a deeper discount zone where buyers might look to step in.
📈 Bullish Rejection & Upside Move:
If price finds support within this FVG and shows strong bullish intent, we could see a push to the 4H order block (OB) sitting at 1.048.
A move toward this OB would be a potential liquidity grab before any larger directional move.
📊 Market Context & Why This Level Matters:
We are currently in a premium zone, meaning price is at a level where smart money is more likely to look for selling opportunities rather than aggressively buying.
This increases the probability of a retracement lower, especially if the fair value gap fails to hold.
The golden pocket aligns with a strong Fibonacci retracement zone, making it a high-probability target for a deeper correction.
🔥 Final Thoughts: This is a pivotal moment for EUR/USD. A confirmed break or a strong rejection from this level will provide clear trade opportunities. Keep an eye on price action, watch for confirmations, and plan accordingly!
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Trade active
EURUSD broke out of the support zone (FVG) and can possibly bounce of the golden pocket which is our target.
Note
We found support at the 0.5 level and still looking bearish.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.