EURUSD is currently stuck in a tightening range, with price action compressing after a strong impulsive move higher. This type of structure typically reflects a battle between buyers securing profits and sellers attempting to regain control, creating a buildup phase rather than a clear trend continuation.
The recent swings show reduced momentum and overlapping candles, which is a classic sign of liquidity being accumulated on both sides. This environment often leads to false moves before the real directional push unfolds, making it a high-risk zone for reactive traders.
If this compression continues, the probability increases for a sharp expansion move, where price breaks out with conviction and clears trapped positions. The key here is not predicting direction prematurely, but recognising that this phase is designed to exhaust participants before the next decisive move.
Disclosure: We are part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in our analysis.
The recent swings show reduced momentum and overlapping candles, which is a classic sign of liquidity being accumulated on both sides. This environment often leads to false moves before the real directional push unfolds, making it a high-risk zone for reactive traders.
If this compression continues, the probability increases for a sharp expansion move, where price breaks out with conviction and clears trapped positions. The key here is not predicting direction prematurely, but recognising that this phase is designed to exhaust participants before the next decisive move.
Disclosure: We are part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in our analysis.
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Learn how to trade correctly with We Trade Waves. Wave analysis, psychology & mentorship that works! 🌍 45K+ YouTube subs, 600+ 5⭐ reviews
Don’t waste more time and money
Join WTW Pro Now 👉 wetradewaves.com
WTW Team
Don’t waste more time and money
Join WTW Pro Now 👉 wetradewaves.com
WTW Team
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.