EUR/USD remains trapped between a well-defined resistance zone and a strong support area, suggesting that the market is currently in a consolidation phase rather than a trending environment.
Since the sharp decline seen in mid-May, sellers have gradually lost momentum, but buyers have also struggled to generate enough strength to trigger a meaningful breakout. Instead of creating a new directional trend, price has spent the past several sessions rotating back and forth between support and resistance. This type of price action often reflects a balance between buyers and sellers, where both sides are waiting for a catalyst before committing to a larger move.
The most important area on the chart remains the 1.16650–1.16800 resistance zone. This region has repeatedly rejected bullish attempts and continues to act as a strong supply area. Every time EUR/USD approaches this zone, buying momentum fades and profit-taking activity increases. From a technical perspective, a clean break and close above 1.16800 would be the first signal that buyers are regaining control. If that happens, the next upside targets could extend toward 1.17000 and potentially 1.17500 as bullish momentum accelerates.
On the downside, the 1.15860–1.15900 support zone continues to play a critical role. This area has successfully absorbed several waves of selling pressure and has repeatedly attracted buyers back into the market. However, support levels tend to weaken after multiple tests. If EUR/USD eventually breaks and holds below 1.15800, it would suggest that buyers are losing control of the range, opening the door toward 1.15500 and possibly the 1.15000 area afterward.
What makes the current setup particularly interesting is that the distance between resistance and support is gradually narrowing. The market is no longer moving aggressively in one direction; instead, it is building pressure inside a defined trading range. Historically, these compression phases often precede a larger directional move once either buyers or sellers finally gain the upper hand.
So the real question now is will EUR/USD finally break above the 1.16650–1.16800 resistance zone and begin a broader bullish recovery toward 1.17000 and beyond? Or is the current rebound simply another range-bound reaction before sellers push price back toward the 1.15800 support area and potentially trigger a deeper decline?
Since the sharp decline seen in mid-May, sellers have gradually lost momentum, but buyers have also struggled to generate enough strength to trigger a meaningful breakout. Instead of creating a new directional trend, price has spent the past several sessions rotating back and forth between support and resistance. This type of price action often reflects a balance between buyers and sellers, where both sides are waiting for a catalyst before committing to a larger move.
The most important area on the chart remains the 1.16650–1.16800 resistance zone. This region has repeatedly rejected bullish attempts and continues to act as a strong supply area. Every time EUR/USD approaches this zone, buying momentum fades and profit-taking activity increases. From a technical perspective, a clean break and close above 1.16800 would be the first signal that buyers are regaining control. If that happens, the next upside targets could extend toward 1.17000 and potentially 1.17500 as bullish momentum accelerates.
On the downside, the 1.15860–1.15900 support zone continues to play a critical role. This area has successfully absorbed several waves of selling pressure and has repeatedly attracted buyers back into the market. However, support levels tend to weaken after multiple tests. If EUR/USD eventually breaks and holds below 1.15800, it would suggest that buyers are losing control of the range, opening the door toward 1.15500 and possibly the 1.15000 area afterward.
What makes the current setup particularly interesting is that the distance between resistance and support is gradually narrowing. The market is no longer moving aggressively in one direction; instead, it is building pressure inside a defined trading range. Historically, these compression phases often precede a larger directional move once either buyers or sellers finally gain the upper hand.
So the real question now is will EUR/USD finally break above the 1.16650–1.16800 resistance zone and begin a broader bullish recovery toward 1.17000 and beyond? Or is the current rebound simply another range-bound reaction before sellers push price back toward the 1.15800 support area and potentially trigger a deeper decline?
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