The euro’s failure at the 1.1900 level is pushing price action lower.
At the time of writing, the common currency is trading near the 1.1800 level. With the trend line and the horizontal support area, price action could be moving into a tight consolidation.
However, the Stochastics oscillator is oversold. Unless it moves further into the oversold levels, the EURUSD could be looking to rebound from the 1.1800 level.
This will keep prices trading flat between the 1.1800 and 1.1900 levels for the near term.
To the downside, the risks of a breakout are higher.
If the euro loses the 1.1800 support, then we expect a move back to the 1.1715 level next.