EURUSD is compressing below key resistance 1.16650-1.16800 EUR/USDOANDA:EURUSDYong726EURUSD is compressing below key resistance. The next breakout above 1.1650 or break below 1.1580 will define the next major directional move. The broader structure on EURUSD still leans bearish, but what’s interesting now is that momentum is no longer expanding lower the way it did during the earlier selloff. After the aggressive decline from the 1.1780 area, price has started compressing into a tighter range, which usually signals the market is waiting for a catalyst before choosing its next directional move. You can already see volatility beginning to fade as candles become smaller and reactions around key zones become more repetitive. Right now, the most important area on the chart is the resistance zone between 1.1665 and 1.1680. That rectangle isn’t just a random supply area — it’s where price repeatedly failed to sustain bullish momentum. Multiple rejection wicks formed there, and every attempt higher was quickly absorbed. That tells us sellers are still defending the zone aggressively. If buyers want to regain short-term control, they need a clean break and acceptance above 1.1650 first, followed by a sustained push through the actual resistance coverage near 1.1680. Only then does the path toward 1.1700 and potentially 1.1750 start to open up. On the downside, the support zone around 1.1580–1.1590 remains structurally important. This area has already held several pullbacks, which means buyers are still active there for now. But the more times a support zone gets tested, the weaker it usually becomes. If EURUSD breaks below 1.1580 with momentum, the market could quickly rotate toward 1.1550 and possibly 1.1500 afterward. That’s why this range compression matters so much — the market is building pressure between two major liquidity zones. What makes the current setup interesting is that both sides still have arguments. Bears still control the higher timeframe trend structure with lower highs and lower lows, while bulls are trying to build a short-term base above support. In other words, this is no longer a clean trending environment — it’s becoming a breakout environment. And those phases often create the strongest moves once one side finally loses control. So the real question now is Will EURUSD finally reclaim the 1.1665–1.1680 resistance area and trigger a larger recovery move, or is this just another pause before sellers push the pair toward fresh lows?