EURUSD Possible False Break Scenario
Quick Summary
EURUSD broke the bearish price channel without sweeping the previous low, This increases the probability of a return lower to take liquidity.
The strong bullish weekly open left a liquidity void behind thats mean the Price may drop again to rebalance the FVG or the channel break could be a false break to collect more liquidity.
Full Analysis
After EURUSD broke the bearish price channel, without performing a liquidity sweep of the previous low
This is an important detail because uncollected liquidity often attracts price back before any sustained continuation
The weekly open was strongly bullish which created a clear liquidity void below.
Such impulsive moves without proper rebalancing usually leave unfinished orders in the market
Because of this there is a strong possibility that price returns lower to rebalance the fair value gap and sweep the previous low.
Another scenario to consider is that the break of the bearish channel may be a false break
In this case price could be using the upside move only to attract additional liquidity before reversing back to the downside.