The market remains at a standstill, not just due to the largely empty macroeconomic calendar, but also because few want to take risks ahead of the release of the latest inflation data for the US and the ECB's governing council meeting. The market also ignored the rise in unemployment in the UK from 4.2% to 4.3%.
EUR/USD, during its pullback, reached the level of 1.0770, where the volume of long positions decreased. As a result, the movement halted, leading to discussions about the possibility of an extension of the downward cycle, which will occur if the price returns to the level of 1.0680. Until then, the phase of retracement and stagnation will persist in the market.
Although GBP/USD remains above the level of 1.2500, downward sentiment continues to prevail in the market. Therefore, a return of the price below the level of 1.2450 may lead to further growth in the volume of short positions, ultimately extending the downward cycle. As for the upward scenario, it will be considered by traders in the event that the price remains above the level of 1.2550. This movement will indicate a subsequent retracement relative to the current cycle.
