EUR/USD Daily Chart

The daily Forex chart reversed up to the EMA after consecutive sell climaxes. At least 2 legs sideways to up are likely over the next 1 – 3 months. The bulls have a High 2 bull flag, but today’s is the more important than the chart patterns today.

The EUR/USD daily Forex chart rallied strongly to resistance after sell climaxes. This is the 1st pullback to the EMA after more than 20 days and therefore a 20 Gap Bar sell setup.

But, when the pullback follows extreme sell climaxes, a minor reversal down and trading range are more likely than a resumption of the bear trend. The trading range will last at least a couple of months. Traders do not yet know if the EMA will be the top of the 1st leg up or if the leg will continue to 1.200 and the May 14 high.

Since today’s FOMC meeting is extremely important, it will probably create a breakout up or down. But, since the chart is now in a trading range, the bears will sell a bull breakout to around 1.20. In addition, the bulls will buy a 50% retracement of the 2 week rally. Furthermore, even if there is a new low, they will buy below the May low.

Overnight EUR/USD Forex trading

The EUR/USD 5 minute Forex chart reversed up from a selloff overnight. However, the range is only 40 pips. Because the 11 a.m. is so important, the odds favor quiet trading into the report.

Day traders should exit all positions before the report. The breakout on the report has a 50% chance of reversing within the 1st 10 minutes. In addition, the breakout and reversal can be big and fast. Therefore, day traders should wait at least 10 minutes after the report before looking to day trade again.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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