Examining the daily chart, we observed a satisfying sweep that cleared the previous high. This was followed by a subsequent sell-off from that high, presenting us with a Market Structure Shift (MSS) and a displacement with a fair value gap (FVG). Presently, my focus now shifts towards monitoring the inside of the daily fair value gap for a potential Hourly (H1) reaction. I’m looking for a setup similar to what we saw on the daily chart, where we made a high, retraced to sweep, and then provided a nice displacement with a FVG.
Side note: Both EURAUD and GBPAUD are showing similar setups, so it’s worthwhile to keep an eye on both pairs in case one offers a more favorable setup than the other.
