Here we have the EURUSD
on the weekly timeframe
. Looking at the general movement of price before looking for a pattern, there is a temporary ranging market inside a clear sideways channel at a strong point of resistance (1.05). General price movement dictates that the more the price tests support, the stronger the support level
. Which leads to a bigger move if price were to break! Due to the recent strengthening of the dollar, we are likely looking at a potential break of support and price dropping further to previous resistance around the 1.00 mark. With clean break and a 500+ pip drop there may be plenty opportunity to enter short positions.