Alex Borzak
⬤ EUR/USD paused near 1.170 after a strong rally from the 1.158 region, with price stabilizing above key technical support zones. The pair maintains a bullish outlook as traders watch which fair value gap will provide the next support level for potential continuation.
⬤ The chart shows a decisive move from 1.158 to 1.174 highs, followed by modest profit-taking. Two H4 fair value gaps sit near 1.165 and 1.170 respectively. Price entered the upper gap zone where selling pressure noticeably decreased and candles began compressing, suggesting buyers are defending this level.
⬤ Technical signals including a market structure shift and SMT divergence preceded the rally from prior lows. A buy stop level marked above recent highs shows the consolidation range remains critical, with multiple fair value gaps now acting as liquidity magnets rather than directional catalysts.
⬤ Holding above these fair value gaps is crucial for maintaining bullish momentum. Sustained support keeps EUR/USD biased higher, while breaking below could trigger a deeper pullback toward lower imbalance zones. How price behaves here will likely shape near-term volatility and sentiment.
Alex Borzak
