The EURUSD currency pair has experienced a rebound from 1.0844, suggesting that a period of consolidation for the recent downtrend from 1.1011 is currently underway. Traders should anticipate range trading between 1.0844 and 1.0920 in the coming days as the pair establishes its near-term direction.
During this consolidation phase, it is crucial to closely monitor price action and key levels. The upper boundary of the range is seen at 1.0920, and as long as this resistance level holds, the downside move is likely to resume. A breakdown below the support level at 1.0844 would confirm the resumption of the downtrend and potentially open the door to further declines, with the next support level situated at 1.0770.
Conversely, a breakout above the resistance level at 1.0920 would indicate that the downside move has potentially completed at 1.0844. In such a scenario, the pair could see another rise towards the previous high at 1.1011, and further upside movement towards 1.1095 cannot be ruled out.
To summarize, EURUSD has rebounded from the support level at 1.0844, indicating a consolidation phase in the market. Range trading between 1.0844 and 1.0920 is likely to be observed in the short term. The downside move is expected to resume if the resistance at 1.0920 holds, with potential targets at 1.0844 and 1.0770. A breakout above 1.0920, however, could suggest a completion of the downside move and potential upside towards 1.1011 and 1.1095. Traders should exercise caution, employ risk management strategies, and stay informed about market developments when trading EURUSD.