Alex Dudov
⬤ EUR/USD kept climbing Friday, heading straight into a short-term resistance zone that's been on traders' radar. The current move brings the pair into an H4 fair-value gap that lines up with earlier liquidity levels. There's also an SMT divergence signal showing up against GBP/USD, which makes this area even more interesting. The pair sits near 1.1523 right now.
⬤ Price lifted off the 1.1490 liquidity line (marked as SSL) and climbed steadily into the fair-value gap. This retraces the sharp rejection we saw earlier when EUR/USD briefly touched the previous daily high zone (PDH) before turning lower. The pair is now testing a structural trendline that's been capping upside moves for several sessions. With the H4 FVG sitting right at this level, the zone becomes even more important since it's where prior imbalances might pull in both profit-taking and fresh orders.
⬤ The SMT setup with GBP/USD points to a momentum gap between these two correlated majors, which usually hints at weakening conviction behind one side of the move. Here's the thing: EUR/USD's push into the gap is happening alongside potential divergence, suggesting the current bullish leg might struggle to push past this resistance. What happens next depends on whether price breaks through the fair-value gap or bounces lower, with focus on the 1.1530 to 1.1545 range.
⬤ This matters because the zone EUR/USD is approaching combines technical imbalance, previous highs, and a clean trendline all in one spot. When price hits areas like this, it tends to shake up short-term volatility and momentum. How the pair reacts here will likely set the tone for upcoming sessions, showing whether EUR/USD continues its recovery or heads back toward recent liquidity lows.
Alex Dudov
