Alex Bobrov
⬤ Currency markets kicked off the week in consolidation mode, with EUR/USD trading inside a tight range after its earlier upward push ran out of steam. The pair settled around 1.18 as volatility dried up and price action shifted from trending to sideways rotation.
⬤ EUR/USD is currently holding inside an active weekly range, hinting that a corrective bounce might happen before sellers make their move lower. The chart reveals a distribution phase forming after the late-January peak near 1.20, with lower highs stacking up since then. The resistance zone sitting above current price marks where sellers previously stepped in.
⬤ Trading from Tuesday through Friday shows balance rather than continuation. Small, alternating candles confirm the market is stuck in sideways mode beneath resistance. The expected path suggests a brief retracement toward the range top, then a potential drop toward the lower boundary near 1.1578—the weekly range low.
⬤ This setup matters because range-bound conditions usually come before volatility picks back up. If resistance keeps holding, downside pressure could build toward the bottom of the range, strengthening short-term bearish momentum while traders wait for a clear breakout from consolidation.
Alex Bobrov
