For the past two days, EUR/USD has been moving sideways, trading within a range of 1.1149 to 1.1201.
What Does This Mean?
- Consolidation Phase:
- As long as the pair remains within the rising price channel on the 4-hour chart, this sideways movement can be seen as a consolidation phase within the broader uptrend that started at 1.0881.
- After this consolidation, further gains are possible, with the next target being around the 1.1300 area. A break above 1.1300 could push the pair towards the 1.1450 area.
- Key Support Levels:
- On the downside, if the price breaks below the channel support, it could fall to the next support level at 1.1149.
- A break below 1.1149 would then target the 1.1097 support level.
Conclusion
EUR/USD is currently in a consolidation phase within a strong uptrend. While the pair trades sideways, further gains remain likely, with potential targets at 1.1300 and 1.1450. Traders should watch the key support levels at 1.1149 and 1.1097, as a break below these could indicate a shift in the trend. For now, the uptrend remains intact as long as the price stays within the rising channel.