EUR/USD Price Analysis: Buyers take a breather as consolidation phase begins
- EUR/USD was seen trading around the 1.0850 area after the European session, correcting lower after a strong rally.
- Overbought conditions led to a pullback, with the pair possibly consolidating between 1.0800-1.0850 before resuming its uptrend.
EUR/USD retreated after reaching fresh highs, trading near the 1.0850 zone on Thursday after the European session. Following a strong bullish run, buyers appear to be taking a pause, allowing the pair to cool off and digest recent gains. This pullback comes as traders assess whether the next leg higher is imminent or if further consolidation is needed.
From a technical standpoint, the Relative Strength Index (RSI) has pulled back sharply but remains near overbought levels, suggesting that the recent correction is part of a broader consolidation rather than a trend reversal. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is printing flat green bars, signaling that bullish momentum has stalled but is not yet reversing.
The key support zone stands between 1.0800 and 1.0850, where buyers could step back in to defend the uptrend. On the upside, resistance is located around 1.0900, with a break above potentially reigniting bullish momentum. If the pair holds within the current range, consolidation may continue before another attempt at higher levels.
EUR/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
