EUR/USD Tests 1.16400 Support as Price Moves Between Key Reaction Zones

⬤ EUR/USD is holding near 1.16400 as the pair tests a critical support zone on the 4-hour chart. The setup shows an IRL (Internal Range Low) around 1.16300 and an ERL (External Range Low) target near 1.16880. Recent candles pushed into the pink IRL zone with long wicks, showing sellers met buying interest at lower levels.

⬤ The chart reveals tight consolidation between 1.16400 and 1.16600 after several failed attempts to break above resistance. A long wick into the IRL zone around 1.16300 suggests absorption of sell-side pressure. The ERL level at 1.16880 represents the next upside target if buyers regain control. Current price action reflects indecision following a series of lower highs.

⬤ These reaction zones matter because they frame where EUR/USD is likely to respond to shifts in momentum. The IRL zone acts as immediate support where price briefly dipped before bouncing, while the ERL marks potential upside if liquidity flows back into the pair. Traders are watching these boundaries to gauge whether consolidation breaks higher or tests support again.