The EURUSD trend is suggesting we could see EURUSD move long however, seasonally the stock markets fall which usually leads to safe haven currencies like the USD strengthening, so could we make a case for EURUSD short?
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The weekly chart makes a case for both long and short positions. One the bearish side we can see that last week’s candle low has been broken.
This can often lead to the market falling further. Seasonally we usually see the stock markets fall through September this can see investors move to safe haven currencies like the USD and could add to the short bias.
The Daily Time Frame
The daily time frame is offering more for the bulls in the market as we have recently seen it form a higher high on the daily time frame.
The price is currently retesting and forming a bullish rejection of the highs, using price action we could look for long opportunities if it closes like this.
The 4hr Time frame.
We think that the 4hr time frame is the one to watch in this type of situation. It is a good mid term time frame that can help determine short and long term trading opportunities.
Typically when the market is going to form a bullish impulse phase the 4hr time frame will form higher highs and higher lows, if the price rallies and breaks through the highs highlighted by the purple line we could look for long opportunities.
However, if the fundamental/seasonal pattern plays out and the current 4hr down trend continues we can look for further short opportunities to the lows.
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