Victoria Bazir
⬤ EUR/USD has shifted into consolidation mode following a strong rally, with the pair now pulling back from its recent peak and testing support around the mid-1.17s. The current price action looks like a healthy pullback rather than any kind of trend change, and the overall bullish framework is still holding up.
⬤ After its recent climb, EUR/USD is consolidating in the 1.178–1.180 zone, forming a short-term pattern of lower highs and lower lows on the hourly timeframe. This structure is creating some downside pressure for now, but the main uptrend hasn't been broken and traders are treating this as a correction rather than a full reversal. Fibonacci levels mark support near 1.1768, 1.1755, and 1.1742, with resistance sitting around 1.1786, 1.1805, and 1.1878.
⬤ Technical indicators are showing a corrective move with fairly weak momentum. The RSI is hovering near 41—weak but not oversold—which leaves room for a bounce if buyers step in. Volume has been light during the decline, suggesting there's no panic selling happening. The pair has slipped below the middle Bollinger Band and Parabolic SAR dots are sitting above price, both pointing to a short-term correction. Volume Profile shows 1.1719 as the main point of control and a critical support level if the pullback continues.
⬤ The broader EUR/USD trend is still bullish, backed by higher swing lows on the chart. While consolidation is playing out, price action may continue around the 1.1768–1.1755 zone before making its next move. Volume Delta readings show some selling, but nothing that looks like capitulation. As long as EUR/USD stays above trend support and the 1.1719 area, the bullish bias remains in place.
⬤ Macro factors are still driving sentiment. Expectations that the Fed may start cutting rates next year are weighing on the dollar, while the ECB hasn't gone full dovish yet, which is helping the euro. In the near term, EUR/USD will likely stay sensitive to US data releases and moves in the DXY index, which means choppy trading could continue as the pair holds above key support.
Victoria Bazir
