Alex von Stachelkopf
⬤ EUR/USD has pushed higher on the H4 timeframe after bouncing aggressively from lows near the 1.158 area. Traders are watching to see if price dips back into the H4 fair value gap before hitting upper liquidity targets. Right now, the pair is trading around 1.167 following a strong bullish move and some consolidation.
⬤ The chart shows a clean downside sweep at the recent low—marked as SMT—which triggered an immediate bullish reversal. That move created an H4 fair value gap sitting roughly between 1.160 and 1.162. Since then, EUR/USD has been respecting this zone as support, with buyers stepping in and pushing price higher through a series of higher lows.
⬤ The pair is now testing external liquidity near previous highs around 1.169 to 1.170, marked as the "Draw" level on the chart. At the same time, there's a chance price could rotate back down into internal liquidity before making another leg up. The consolidation just above the fair value gap shows the market is pausing—deciding whether to revisit that internal zone or push straight through to the highs.
⬤ This EUR/USD setup matters because the pair often signals broader shifts in dollar sentiment and short-term liquidity flows across forex markets. How price interacts with these fair value gaps and liquidity zones could shape volatility and direction for other major pairs. With EUR/USD holding above its H4 demand area and sitting just below prior resistance, the next few sessions should tell us whether this recovery continues toward 1.170 or takes a breather first.
Alex von Stachelkopf
