Identifying Entry Points in EUR/USD: A Simple RSI Strategy

11 сент.

As a former professional technical analyst at a major bank, I used to write daily reports on the euro vs. the US dollar. Today, I want to share a technique I often used to identify entry points in the market.

Looking at the EUR/USD weekly chart, I’ve spotted a large symmetrical triangle that’s completed, with the market breaking higher. A common move in this pattern is a retest of the breakout point, which here would be a drop to around 1.0930. As long as the price stays above 1.0930, the pattern holds, and your outlook remains valid—this also helps define where to set your stop.

Next, I zoom into lower time frames, such as the daily or 4-hour charts, to find potential entry points. I rely on the RSI (Relative Strength Index) to identify oversold conditions. If the daily chart shows no clear signals, I move to the 4-hour chart. Right now, the 4-hour chart is showing periods of oversold RSI, which is when I’d consider entering long positions.

Remember, the price might not drop all the way to 1.0930, so you’ll need to decide when to enter the market. Using RSI and adjusting down time frames can help you make that call, with your stop already in place.

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