The EURUSD currency pair is approaching the culmination of its upward movement on lower timeframes. Bullish momentum is showing signs of exhaustion. This is confirmed by the RSI divergence. The rally will likely stall around the 1.1700 level, where the first technical resistance (formed on higher, more significant timeframes) is located. Upon reaching 1.1700, a downward reversal to the previously broken resistance at 1.1600 is expected. It is worth noting that both levels (1.1600 and 1.1700) are round numbers, which naturally attract market interest. A large volume of limit orders is typically concentrated in this area. To meet them, matching counter-demand is needed, but this process takes time. This is why round levels are considered to be stronger than others. It is hard to predict further price trajectory beyond this point. The EURUSD pair could break above the 1.1700 level or drop below 1.1600. However, the most probable scenario at the moment suggests a pullback to 1.1600 after testing 1.1700, as the price needs to consolidate within this range first.
The news sentiment also should be monitored, as any unexpected event could trigger EURUSD volatility, invalidating all the technical scenarios described above.
The overall recommendation is to sell EURUSD from 1.1700.
Take Profit could be set at the level of 1.1600. Stop Loss could be placed at 1.1790.
The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance doesn’t allow opening a position of this size, it’s better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.
This content is for informational purposes only and is not intended to be investing advice.
