EURUSD - Anticipated Pullback to Key Reaction Zone

The EUR/USD 4-hour chart shows a recent downward movement after reaching peaks around 1.0950. Price action indicates a bearish momentum developing, with the pair currently trading at approximately 1.0815. We are expecting a pullback to occur first to the reaction zone marked on the chart (approximately 1.0730-1.0750 area, highlighted in blue), which represents a significant fair value gap. Traders should wait for the price to reach this zone and then look for signs of a bullish reversal, such as candlestick patterns (like hammers or engulfing patterns), divergences on oscillator indicators, or increased buying volume. This reaction zone could provide an attractive entry opportunity for long positions if bullish confirmation signals appear, potentially initiating a new upward movement from this established support area.

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