📈 EURUSD → Pre-break consolidation. What could happen?
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EURUSD may try to break resistance and there are several prerequisites for this from a technical analysis point of view
The dollar index is trading quietly today as the US celebrates the President's Day. Volatility may be low, but there are preconditions on the chart that prepare the index to decline and the euro to rise. Index: price continues to tighten to support after a shakeout (long candle shadow) was formed. EURUSD relative to the channel resistance on H1 and 1.0785 level is forming a pre-breakdown consolidation after a pullback from the range support. The currency pair is testing a resistance breakout attempt and price consolidation above 1.07850 will form the potential for bullish distribution.
Resistance levels: 1.0830, MA-200, 1.0887
Support levels: 1.0785, MA-50
I expect to see an attempt to break the trend resistance, with a high probability it can be successful, but this chance is not 100% percent. Consolidation above the above mentioned area may give us a chance