EURUSD - gap is filled, what’s next? Buys? Sells?

Here is our in-depth view and update on EURUSD. Potential opportunities and what to look out for. This is a long-term overview on the pair sharing possible entries and important Key Levels.

Alright first, let’s take a step back and take a look at EURUSD from a bigger perspective. For this we will be looking at the H4 time-frame.

Now the main focus everyone has is the “GAP”. Yes the gap has been filled but sellers who tried to take advantage of it, have experienced drawdown today. EURUSD still has a chance to dig deeper into that gap potentially giving us better entries OR breaking to the upside. So here are the possible scenarios on EURUSD we have pre-planned for the following days.

Scenario 1: BUYS at the break of 1.04334

- We broke above 1.04334.
With the break of this level we can expect a possible move towards the upside. Even though we are extremely bearish on EURUSD for quite some time, short-term DXY weakness can cause the pair to see possible higher levels.

Scenario 2: SELLS

- We dug deeper into the “gap price” or we stayed below roughly 1.03462.
With sells we have several possible entries. We can expect a deeper dig to the upside potentially giving us better entries. On the other hand, if we don’t experience that, and stay below 1.03462 we can expect more sells to come.

KEY NOTES

- EURUSD is overall still bearish.

- DXY (USD) experiencing short-term bears.

- Breaking above 1.04334 would result in more upside.

- Staying below the gap fill, would result in sells.

- Possible deeper digs to the upside before the sell off.

Happy trading!

FxPocket