In today’s technical analysis, let’s focus on EUR/USD. Over the past few sessions, the pair has been moving sideways, forming a clear rectangle pattern marked in orange. This consolidation reflects temporary balance between buyers and sellers after the prior directional move.
What makes this setup more interesting is its location. The rectangle is positioned just above an important horizontal support around 1.1895, marked in green. This level has proven its relevance in the past and now acts as a key structural floor for the current price action.
As long as EUR/USD remains above that green support zone, the overall sentiment stays mildly positive. The consolidation can be interpreted as a pause within a broader constructive structure. However, this positive bias depends entirely on support holding.
A breakout from the rectangle to the downside, combined with a decisive daily close below the 1.1895 support, would change the picture completely. Such a move would generate a proper sell signal and indicate that buyers have lost control of the structure.
Until that happens, the pair remains in consolidation mode. The rectangle defines the short-term range, and the eventual breakout from this formation will determine the next meaningful directional move.