EURUSD Forms Base as Momentum Shifts HigherEUR/USDOANDA:EURUSDXAU_CAPITALEURUSD is currently transitioning from a prolonged corrective decline into a developing recovery phase marked by improving momentum characteristics. After an extended period of distribution and lower highs, price action formed a base structure that suggests seller exhaustion and gradual absorption of supply. The recent bullish impulsive move reflects a shift in short-term sentiment, with stronger candle bodies and sustained follow-through indicating renewed participation. Earlier downside pressure appears to have completed a liquidity rotation cycle, allowing the market to rebalance positioning before initiating a rebound. The transition phase is characterized by compression followed by expansion — a classic volatility cycle behavior. From a macro-flow perspective, the move may be influenced by shifting expectations around monetary policy divergence, bond yield recalibration, and relative currency strength dynamics between the euro and the U.S. dollar. As capital rotates across major currency pairs, EURUSD appears to be stabilizing after pricing in prior bearish narratives. The projected path suggests that short-term pullbacks could act as structural retests within a broader recovery attempt rather than immediate continuation of the prior decline. Momentum sustainability will depend on whether buyers maintain control during retracement phases and prevent renewed downside acceleration. Overall, the pair is showing early signs of trend development following a corrective sequence, positioning EURUSD for a potential measured upside repricing if expansion conditions remain intact.