Seasonal reports suggest the USD performs well throughout the month of May, so will the price of the #EURUSD continue to trend higher?
And if so, where will that trend likely end?
Watch the video to learn more…
Today, we’re taking a look at EUR/USD and look for its opportunity to continue its slight uptrend.
Practice trading with a demo account
We need to be careful with opportunities on the US Dollar during the last week of April because we usually see a reverse in May.
In the meantime, we have to look at the trend and the strength and weakness of other currencies to predict the moves and turning points.
The market is in an uptrend. We had a a retracement phase on the daily timeframe recently.
The price then exploded higher and broke out. We had a nice bullish close, which led me to look at the volumes within the retracement phase. Then we saw 1.20377 as an opportunity for the price to move higher.
This suggests that buyers were active there because there was a large bullish breakout.
I’m anticipating the price to come back to 1.20377 and rally to the upside, using that level as support.
EUR/USD has been trending higher on the daily timeframe and recently, we saw a new high with the price breaking out of a consolidation. Within the consolidation, the most traded level was 1.20377. If the price retraces to this level, then we should see a continuation of the trend.
Now, we noticed that the market turned around at the 1.21925 candlestick. This was a previous high volume level where the price reacted from.
This suggests that institutions and sellers were doing business within this candlestick because we got a really strong turnaround in the market from that level. Could they be active there again?
I would look at it from a larger timeframe using the 1.21925 candlestick. I would apply a supply zone and see if the price trends off of the 1.20377 level. Then I would take targets and look for a reversal in the potential price.
If the price finds support at the high volume level, then we need to identify an area of resistance that the market would target. As we can see, the market fell considerably from the 25th February candle. This shows us that institutions were doing business at these prices and could be an area where the market will find sellers again.
Again, we’ll have to look at the US Dollar weakness and strength at that point because we may see a bit of strength come back to the market.
However, that would be an ideal area to look for profits. So, keep an eye on 1.20377 as this will be the support level to keep your eye on.
If you’re new to trading, it can be quite overwhelming. But fear not, you can try trading EUR/USD at no-risk by opening a demo account. When you’re ready to trade live, our customer support team will be there to assist you.