EUR/USD Fibonacci Levels in Focus as Oil Fuels Inflation Risk

Oil's return above the $100 mark is reviving inflation concerns just as central banks weigh their next policy moves, and EUR/USD is reflecting that uncertainty on the chart. Price is consolidating near the 61.8% Fibonacci retracement of its recent swing, a zone that has historically acted as a pivot for trend continuation or reversal.

Candlestick structure shows a series of indecisive dojis clustering around this level, suggesting the market is waiting for confirmation before committing to a direction. A clean break above the retracement zone would target the prior high, while rejection reinforces the descending trendline drawn from the last major top.

Volume has thinned during this consolidation, typical ahead of a volatility expansion tied to incoming inflation data.