daily chart of EUR/USD, i observe a significant consolidation pattern forming between the major support level at approximately 1.0400 and the weekly resistance levels near 1.1200. The pair is currently trading around 1.0911, showing a potential breakout scenario.
>> Key Levels:
Weekly Resistance: The zone between 1.1000 and 1.1200 serves as a strong resistance. A break above this could signal a bullish continuation towards higher targets.
Major Support: Around 1.0400, this level has held multiple times and is critical for the bulls to defend.
Triangle Formation: The price is squeezing within a triangle pattern. A decisive breakout could provide clear directional cues.
RSI Indicator:
The RSI is currently around 60, indicating some bullish momentum but still below overbought territory. Monitoring RSI for divergence or confirmation of a breakout will be essential.
>> Scenarios:
Bullish: A breakout above the triangle and weekly resistance could lead to a rally towards the 1.1400 area.
Bearish: Failure to break the resistance and a move below the triangle support could drive the price down to retest the major support at 1.0400.