On the daily chart, EURUSD has been oscillating within a significant range that dates back to March 2022, marked by 1.07509 and 1.0805. The pair's highest and lowest prices today were 1.08007 and 1.07474, respectively, meaning it fell just 5 pips shy of the range's upper limit and exceeded the lower limit by a mere 3.5 pips. Hence, the market is currently locked in this band, with both buyers and sellers poised for a breakout. At present, the price stands near the lower end of the range at 1.0757, making the daily chart's narrative coherent.
However, the 5-minute chart paints a more volatile picture with sharp fluctuations. The pair saw considerable volatility throughout the day, reaching a peak at 1.0800 in the early U.S. session. Despite briefly breaking above the 100-hour moving average, it struggled to maintain its momentum due to resistance at 1.0805 from the daily chart, a fact traders duly noted. Consequently, the pair declined in the latter part of the U.S. session, breaking several intraday levels including the 100 and 200 bar moving averages, Asian session lows near 1.0766, yesterday's low at 1.0759, and the 1.0754 level, thereby settling at 1.0754.
Looking ahead, traders will keenly watch these levels, with sellers aiming to maintain control in the short term. If sellers are serious about pushing prices further down, they should be able to hold the price below 1.0766, a level that now acts as resistance. A decisive break below 1.0750 and 1.0747 could trigger further downside momentum, opening up new avenues for sellers.
See the earlier video on the pair: