EURUSD – Back in the Wedge

by May 23, 2020Setups2 comments

Yesterday’s Summary

Price have managed to come back down inside wedge pattern and it has reached first support level. As discussed yesterday for bearish scenario price have returned back and stopped right on the upper level of the previous range area.

It was pretty easy drop down with just 2 bearish candles which suggest there were no buyers. While it was Friday, many buyers that pushed the price to the high level have gone out to cash out and protect their profit.

As said, Friday is the day when we cannot take market behaviour as a possible continuation because of taking profit scenario.

To have better and more clear picture we need to wait Monday. On Monday traders are entering into the market and making possible trend for the rest of the week.

EURUSD Daily Forecast 23_05_2020

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EURUSD Chart Forecast

Price is back in the wedge pattern and it is on the support level. H4 chart closing price tells us that the price is gone down enough to make a test move back in the previous range area.

This could happen if price reverse back to the previous confluence level at 1.09371 and from there make a bearish price action signal.

On the daily chart we can see that the price have closed below previous bearish candle lows which suggest that the price could go more down.

Because of long price drop we could see pullback before trying moving more down.

EURUSD Daily Time Frame 23_05_2020

EURUSD Chart – Are There Any Bulls

Since last Tuesday bulls had a lead and they pushed the price all the way up to the previous resistance. Only on Friday they have lost momentum because of traders going out from the market or because they have lost strength.

If they have strength, on Monday we will see price moving up to the confluence level around 1.09371 level.

If they manage to break through that confluence level it will mean they are outside of the wedge pattern and there is nothing to hold them back. They could reach higher levels and first one is 1.10373.

I would like to wait Monday and see what happens because market will make a move and it will make more clear path for future movements.

The market is not easily predictable and we need to prepare our self for bullish or bearish scenario. Risk management is crucial in Forex trading so play safe and set stop loss.

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Frano Grgić

Frano Grgić

A Forex trader since 2009. I like to share my knowledge and I like to analyze the markets. My goal is to have a website which will be the first choice for traders and beginners. Market analysis is featured by Forex Factory next to large publications like DailyFX, Bloomberg... GetKnowTrading is becoming recognized among traders as a website with simple and effective market analysis.

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  1. The Respirator Shop

    I’d say this is among the best article I’ve read. From beginning to end it
    was nailed by you completely. To write this you may have worked hard for study.

    King regards,
    Boswell Valenzuela

    • Frano Grgić

      Hi Boswell Valenzuela,
      thanks. It takes time to learn. When you love what you are doing is not so hard.
      Best regards.