EURUSD remains in a tight range since the 21st of March and once again tested he upper bound on Friday’s close.
The first chart setup is the longer term 4-hour divergence indicating lack of strength in the average gains.
This time-frame doesn’t show the ranging nature this pair is in at the moment. The takeaway here is looking at the relative strength index (RSI) showing average gains topping out failing to break previous highs. Despite being in an overall uptrend on the 4-hour time frame, this is our first indication that the rally is expected to come to an end.
Next up is the hourly time frame indicating the range forming since mid-day of March 21st. The most recent drop should be discounted for position close-outs on Friday’s session end. This multiple top further indicates supply pressure building up for a potential break-down.
Stay tuned for further indication on Sunday’s session open.