Usman Salis
The EUR/USD currency pair finds itself at a critical juncture as it tests important technical support levels. With recent price action bringing the pair into a significant Fair Value Gap zone, traders are closely monitoring whether this area can provide the foundation for a potential bullish reversal or if further weakness lies ahead.
EUR/USD Price Analysis on the 4H Chart
EUR/USD is currently testing a major 4-hour Fair Value Gap (FVG) that could be the deciding factor for the pair's next move. According to trader @sirrillahfx, this recent pullback has brought the currency pair right into a key support zone that often acts as a springboard for upward moves.
The current setup shows price sitting in the FVG zone highlighted in red on the chart. As long as this area holds up, there's a good chance we could see a bounce. The Swing Structure Low (SSL) is acting as immediate support, and staying above this level keeps the bullish outlook alive.
If buyers can defend this zone, we might see a push toward the Buy-Side Liquidity (BSL) levels above, which could give the euro some momentum in the short term. However, if this support fails, the setup falls apart and we could see deeper losses.
Key EUR/USD Price Levels to Watch
The critical support zone sits between 1.0700–1.0720, where the Fair Value Gap is located. The SSL level needs to hold to keep any bullish hopes alive, while the target area lies above 1.0900, where there's a cluster of liquidity waiting.
If bulls can step in around this FVG area, EUR/USD might be setting up for a solid rally, especially with the dollar showing some signs of weakness lately. Traders are watching the next few trading sessions closely - a strong bounce here could signal a move toward 1.09–1.10, but a break below support could mean more downside ahead.
Usman Salis
