After a strong bullish rally, EUR/USD has approached a major weekly resistance zone around 1.1295, a level that has held multiple times since 2023.
On the weekly timeframe:
Price has tapped into this resistance area and is showing signs of hesitation.
The RSI is at 67.59, approaching overbought territory.
A solid move has already played out, and we could be looking at a potential mean reversion move.
Volume has spiked, indicating possible distribution.
I've placed a short position at the current level, targeting a move back toward the 1.0950 area – near previous consolidation and the rising 21-week SMA (now at 1.0560, gradually catching up).
Stop loss: 1.1295
Take profit: 1.0950
Risk: -2.25 CAD on a 20,000 unit position
This setup offers a decent risk-to-reward ratio, and I'm closely watching how price behaves around this resistance. If the level breaks with momentum and volume, I’ll re-evaluate the bearish bias.
What do you think? Do you see EUR/USD pushing through or rejecting hard from here?
#EURUSD #Forex #TechnicalAnalysis #SwingTrade #Resistance #RSI #WeeklyChart #ShortSetup
On the weekly timeframe:
Price has tapped into this resistance area and is showing signs of hesitation.
The RSI is at 67.59, approaching overbought territory.
A solid move has already played out, and we could be looking at a potential mean reversion move.
Volume has spiked, indicating possible distribution.
I've placed a short position at the current level, targeting a move back toward the 1.0950 area – near previous consolidation and the rising 21-week SMA (now at 1.0560, gradually catching up).
Stop loss: 1.1295
Take profit: 1.0950
Risk: -2.25 CAD on a 20,000 unit position
This setup offers a decent risk-to-reward ratio, and I'm closely watching how price behaves around this resistance. If the level breaks with momentum and volume, I’ll re-evaluate the bearish bias.
What do you think? Do you see EUR/USD pushing through or rejecting hard from here?
#EURUSD #Forex #TechnicalAnalysis #SwingTrade #Resistance #RSI #WeeklyChart #ShortSetup
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.