EURUSD Stuck Between Key Support and Resistance LevelsEURUSD appears to be setting up for round two. The white trendline, which represents the long-term trend from 2008, was tested at the beginning of this week. The expected bounce followed, pushing EURUSD back toward the yellow trendline. Now, the pair is once again approaching to white trend.
A clear break below the trendline could easily push EURUSD lower in the coming weeks, possibly toward 1.07. However, the outlook remains uncertain, with new developments and data pointing in different directions.
My base case is that the range between the 1.1050–1.11 support zone and the 1.1275 resistance will hold for a few more days. With limited U.S. data scheduled for next week, EURUSD may take the opportunity to consolidate and trade sideways.
Of course, if a breakout occurs in either direction, I would expect volatility to increase significantly.
