EURUSD Price Continues In Consolidation This Week
EURUSD remains in a consolidation phase near the 1.04000 level as sellers gradually gain an advantage. Both buyers and sellers have struggled to assert control, with the pair experiencing low volatility.
EURUSD Key Levels
Resistance Levels: 1.05000, 1.09550
Support Levels: 1.03340, 1.02500
EURUSD has been consolidating after sellers took control in November, following a rejection at the 1.09550 significant resistance level. The currency pair dropped to a low of 1.03340, but the market has since been indecisive, hovering around the 1.04000 region.
The Bollinger Bands indicator reveals compressed volatility, with the price trading below its middle line, indicating a lack of directional momentum. Additionally, the Momentum indicator has been steadily declining, reflecting weak buying activity.
If bearish sentiment persists, EURUSD could retest the 1.03340 support level. A breakdown below this level could open the door to further declines toward the 1.02500 area. Conversely, a breakout above 1.05000 would signal a potential recovery, with buyers targeting the 1.09550 resistance zone.
Market Expectation
On the shorter time frame, EURUSD continues to consolidate, with the Bollinger Bands tightening even further. While the Momentum indicator shows early signs of building strength, no clear breakout has yet occurred.
If sellers take advantage of current market conditions, the price could dip toward the 1.03500 key level in the medium term. Alternatively, a recovery above the 1.04500 significant zone would indicate a potential bullish attempt to regain control, which could resonate with forex signals across related markets.
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