The EURUSD currency pair is currently caught between support and resistance zones. Buyers are holding the range from 1.1663 to 1.1691, a key support level that has been in place since April 2021. This area has seen steady buying activity throughout the week, stopping the price from dropping further. If it breaks below this level, we might see a decline to 1.1614-1.1629, 1.1568-1.1578, or possibly down to the 38.2% retracement level at 1.15357. Resistance lies at the 100-hour moving average around 1.1713 and the 200-hour moving average near 1.1745. Sellers have been pushing against these levels, limiting upward movement and keeping the currency within a range. If buyers can break through these average resistance levels, attention could shift to this year’s high, last seen at 1.1827. Currently, the EURUSD remains trapped between these support and resistance areas. Until either side breaks out clearly, trading will likely stay within this defined range. Recent price movements have established reliable zones — buyers react near the 2021 support, while sellers respond quickly at the moving averages. This behavior defines what the market considers cheap or expensive at the moment, and traders are approaching this with caution. Price is fluctuating comfortably between these levels without sufficient pressure to change direction. The longer it stays in this range, the stronger the eventual breakout could be. We’re seeing a classic case of compression, not just in price but also in trader confidence. Daily candlestick patterns show hesitance; with both sides closing near their openings, neither has taken control yet. This situation is similar to a coiled spring under constant tension. Such compression often resolves quickly when one side makes a mistake or is overpowered. When that happens, movements can be rapid and intense, especially in leveraged or automated trading environments. If the current market zones are breached, they likely won’t provide much support on the way down. These are areas where buyers have previously fought; if they abandon them, it can lead to rapid declines. If the support range from 1.1663 to 1.1691 breaks, we would expect selling to increase quickly. Momentum indicators would signal this downward movement with strong conviction. Acceptance below these levels would suggest continuation, not a reversal. On the upside, the moving averages clearly mark where sellers are comfortable acting. However, these aren’t solid barriers; if one is surpassed, the market could quickly shift to the next level. If we break through both moving averages and hold this ground beyond the 200-hour average, there’s potential for an upward move. The target would likely be this year’s high, around 1.1827, which hasn’t been tested in a while. Timing trades in this environment depends on market participation. Low volume can lead to false breaks as impatient traders react. On days with higher activity and more volatility, these levels can break more easily. It’s also important to monitor option expirations in upcoming sessions, as they indicate where the market has risk exposure and potential price movements. We’re looking for signs like long candlesticks closing outside the zones, a break followed by a retest, or large trades entering right before support or resistance is breached. These are strong indicators of market commitment preparing for movement. For now, the range remains intact. It will take just a small amount of pressure and positioning to push the price in either direction, but so far, neither has emerged with strong volume or follow-through. Until then, any moves toward the edges of this range are tests, not trends.

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