Overview

EURUSD is recovering after a recent decline and is approaching higher-timeframe resistance. While short-term momentum has shifted upward, price is moving toward areas where multiple technical confluences exist, making this a location to monitor for potential reactions rather than assuming continuation.

Higher Timeframe Structure

The broader market structure remains corrective following the previous bearish shift. Price is currently retracing into premium pricing where several technical factors overlap:

Daily Fair Value Gap (FVG)
Daily Order Block (OB)
Fibonacci Golden Zone (61.8%–79%)
Previous structural resistance

This combination creates an area where supply may re-enter the market if bearish order flow returns.

Bullish Scenario

If buyers maintain control, price may continue higher into the Daily FVG and Order Block before encountering stronger resistance.

A sustained acceptance above this zone would weaken the immediate bearish outlook and suggest that buyers remain in control.

Bearish Scenario

If price reaches either the Fibonacci Golden Zone or the Daily FVG + Order Block and begins to lose momentum, traders may monitor for:

Rejection candles
Lower-timeframe Change of Character (CHOCH)
Market Structure Shift (MSS)
Break of short-term support followed by confirmation

Only after confirmation would a bearish continuation become a scenario worth monitoring.

Key Technical Levels

Primary Resistance

Fibonacci Golden Zone
Daily Fair Value Gap
Daily Order Block

Support

Recent swing low
TP1: Intermediate support area
TP2: Major demand / previous swing low
Trading Plan
Allow price to complete its retracement into higher-timeframe resistance.
Avoid anticipating reversals before confirmation.
Monitor lower-timeframe price action for evidence of seller participation.
If price is accepted above the Daily Order Block, reassess the bearish outlook rather than forcing a bias.
Risk Considerations

Markets can trade through higher-timeframe supply before reversing, or continue trending if buying pressure remains strong. Waiting for confirmation may help reduce the risk of reacting too early to a potential reversal.

Conclusion

EURUSD is approaching a technically significant confluence zone where the Daily Fair Value Gap, Order Block, and Fibonacci Golden Zone intersect. Whether this area acts as resistance or is ultimately reclaimed will depend on how price behaves upon arrival. Until confirmation appears, both continuation and rejection remain valid possibilities.

This analysis is for educational purposes only and does not constitute financial advice. Always use appropriate risk management and confirm your setup before entering a trade.