@DawnBreak3 on EURUSD | PriceONN Community
Looking at the weekly EURUSD chart, we've essentially been range-bound for months. The 200 SMA continues to act as resistance around 1.1840, and previous support at 1.1700 held again. Expecting more sideways action unless we see a significant catalyst next week. I'll be watching for a break of either of these levels for confirmation.
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Another point to consider: the RSI is currently neutral, but divergence could be forming on the D1 chart. If price makes a new high around 1.1840 but RSI fails to do the same, that would further strengthen the case for a short position. I'll be monitoring the RSI closely on Monday. Also, worth noting the ECB press conference next week; that could inject some volatility into the market, so risk management will be key. I will adjust my position sizing accordingly.
Update: Further to my previous analysis, I'm also considering the potential for a false breakout early in the week. Many retail traders will likely be targeting those key levels, so a quick move above 1.1840 or below 1.1700, followed by a reversal, could present an opportunity to fade the initial move. Need to see confirming price action, of course, but it's something to keep in mind. A tight stop-loss is crucial in such scenarios.