EURUSD – Coiling Inside a Symmetric Triangle, Breakout Looms
Date: 07 July 2025
Market Overview
The EURUSD currency pair has been experiencing a period of sideways movement since the end of June 2025. This consolidation is taking place within a symmetric triangle pattern, characterized by narrowing highs and lows. Despite significant macroeconomic events, such as the recent non-farm payrolls report, the pair has yet to exhibit a decisive breakout.
Recent Price Action
Following the release of the non-farm payroll data, the EURUSD saw a sharp decline, which was quickly followed by a recovery that brought the price back to levels seen prior to the data release. This indicates a market that is currently in a state of indecision, with traders awaiting further direction.
Technical Analysis
The price is nearing the apex of the symmetric triangle, suggesting that a breakout is imminent. The analysis presents two primary scenarios:
- Primary View: A breakout above the upper black trendline of the triangle would signal a clear technical buy opportunity, likely leading to a rapid increase in momentum.
- Alternative View: Conversely, a break below the lower black trendline, especially if accompanied by a close below the yellow horizontal support level, would trigger a strong sell signal, potentially leading to a deeper price retracement.
Conclusion
The current coiling price action within the symmetric triangle indicates that a breakout is on the horizon. Traders are advised to monitor the situation closely, as directional momentum could accelerate significantly once the pattern resolves.