The EURUSD pair has entered a consolidation phase, trading sideways within a narrow range between 1.0810 and 1.0871. This sideways movement has caught the attention of forex traders, who are now closely watching for signs of the next directional move.
Currently, the key level to watch is the resistance at 1.0871. As long as the price remains below this threshold, the sideways movement could be interpreted as a consolidation within the broader downtrend that began from 1.1213. In this scenario, traders are keeping a close eye on the lower boundary of the range at 1.0810.
A breakdown below the 1.0810 support could signal a continuation of the downtrend, potentially triggering a move towards the 1.0780 area. If this level fails to hold, the next significant target for the bears would be around 1.0730.
However, the bulls are not out of the game yet. A breakout above the 1.0871 resistance would be a significant development, possibly indicating that the downside move from 1.1213 has found its bottom at 1.0810. If this occurs, traders should be prepared for a potential upside move, with 1.0920 serving as the initial target, followed by the psychologically important 1.1000 level.