Bulls eye fresh highs for Euro as Dollar slips further

• EUR/USD remains bullish on daily and 4H structure, backed by continued dollar softness
• Price is now correcting into a key FVG zone between 1.13821 - 1.14094, where bullish continuation setups may form
• A strong bullish reaction here would open up a run toward 1.1500, while a break below 1.1380 flips the intraday tone neutral

The euro continues to gain ground against the dollar as broader USD weakness persists ahead of Friday’s Non-Farm Payrolls (NFP) event. Following yesterday’s weaker-than-expected ISM Manufacturing PMI, EUR/USD has managed to push to fresh local highs before pausing for breath near the 1.1450 handle.

Bullish scenario materializing

Previously, I mentioned in EUR/USD extends recovery, but faces ECB risk and resistance at 1.14 that A break and close above 1.1375 could target the 1.1400 psychological level and reopen room toward 1.1500.

Four-hour: Watching for FVG rebalance at 1.13821 - 1.14094

On the 4-hour timeframe, EUR/USD has left behind a Fair Value Gap between 1.13821 and 1.14094. Price is currently pulling back toward this level, and a rejection or bullish confirmation inside this area could open the door for a continuation toward the next high at 1.1500.

This FVG aligns with a key structure level from prior consolidation at 1.131 - 1.139 and may act as a launchpad if dollar sentiment stays weak throughout the session.

One-hour: Short-term correction in progress

The 1-hour chart shows price pulling back from a short-term range high, with bearish pressure inside the red zone as the market takes profits from recent upside.

If price dips below 1.140 area and prints a bullish engulfing or strong wick rejection, it would likely signal trend continuation. However, a clean breakdown and hold below 1.1380 could shift the short-term bias back to neutral.

This is also an area for manipulation and take out of sell-side liquidity before Euro launches for renewed strength. As long as Dollar weakens, Euro will continue to hold its ground.

What to expect

• During the European and NY sessions, watch how price reacts inside the FVG zone between 1.13821 - 1.14094.
• If the FVG holds, Euro may resume its uptrend and target 1.1500, possibly extending further this week with NFP as the catalyst.
• However, if we break and close below 1.1380, short-term downside toward 1.1320 could unfold before new long entries emerge.