EURUSD - Key FVG Zones and Potential Market MovesThis EURUSD 4-hour chart highlights critical Fair Value Gaps (FVGs) that could serve as key decision points for price action. The chart illustrates a confluence of factors:
1. Upper FVG Zone:
Located near the 0.618-0.786 Fibonacci retracement levels, this area represents a potential supply zone. Price reaching this level could either result in a bearish rejection or continuation upwards, depending on momentum and market sentiment.
2. Lower FVG Zone:
A well-defined demand zone in the 1.07000-1.07500 range, serving as a key support area where buyers may step in if the price retraces.
3. Projected Scenarios:
- Bullish Scenario (Green Path): If the price holds above the lower FVG and gains momentum, a push toward the upper FVG with potential breakout above could ensue, aiming for levels around 1.09000 and higher.
- Bearish Scenario (Red Path): A rejection from the upper FVG could lead to a retest of the lower zone, and if broken, may lead to further downside below 1.07000.
This analysis underscores the importance of monitoring these zones and the price action dynamics around them. Traders should be prepared for both scenarios while aligning their strategies with broader market context and risk management principles.
