EURUSD Chart Forecast – Back In the Range, May 8

by May 8, 2020Setups

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Today’s EURUSD chart analysis is showing us that we are again in the range area.

Yesterday’s Summary

Bears have pushed the price back in the range area for the third time in the last two weeks. It seems that this area is an area between two very strong confluence levels.

Daily Forecast 08_05_2020_

One confluence level is above range area from 1.08846 to 1.09860 where bears are stronger. Second confluence area is below range, from 1.08275 to 1.07825 where bulls are defending price from breaking down.

As I have pointed yesterday, we have horizontal support level that was touched several times on daily time frame. Same scenario happened again.

Price have bounced from the 1.07825 level which is quite messy level.

Daily 08_05_2020

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I am Using in My Analysis

We have two daily trend lines crossing over and both trend lines are acting as a support level. To add to this strong support with two daily trend lines we have horizontal support line at 1.07825 which have pushed the price up several times.

Today’s EURUSD Chart Forecast

While the price is back in the range we should do same steps like before. We need to  wait what the price will do. Until it breaks down or up from the range it is better to wait.

We can wait for the bearish or bullish price action signal forming next to support or resistance area.

EURUSD Chart – Bullish Scenario

If the price returns to 1.08275 level and makes a bullish price action signal we could look to enter and watching will it break up from the range area. If it breaks up the next step would be small pull back to 1.08846 level and continuing up to 1.09371 level.

If it do no manage to break up from the range area we would see bearish price action signal or at least indecision in the range area.

EURUSD Chart – Bearish Scenario

From the current point where the price is right now we could see price moving up to the confluence level and making bearish price action signal next to 1.08846 level.

If that happens we could enter and wait until the price breaks down from the range area. From there next level is a strong support level 1.07825.

 

Have in mind that today is a Friday and some of usual price action strategies will not work as it should because it is a day when traders are moving out from the market.

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.

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