EURUSD Chart – Forecast for Tuesday, May 12

by May 12, 2020Setups

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EURUSD chart shows us that the price managed to break down from the range area.

Yesterday’s Summary

As we can see the price managed to break down from the range area. It was the third time the price entered into range area in the previous two weeks. And most of the time bears have managed to bring the price out down from that range.

It seems that the bears are stronger than bulls.

On the weekly forecast I have said that bulls are a little stronger but yesterday price action signal tells us that we had indecision. Small H4 candle next to resistance level 1.08508 was indecision candle.

EURUSD Daily Forecast 12_05_2020

After indecision candle we had a strong bear engulfing candle that brought the price down with closing below lows of the previous candles. That close suggested that the price could move more down.

On the weekly forecast I said that in the case of break down we should wait for the pullback to 1.08275. And we had just that scenario.

After strong bear engulfing candle, price have stalled and moved a little more down. After that price returned back to resistance level where it formed bearish Pinbar which suggested that the price could move more down.

Price have moved down to the first support level at 1.07825. That is current confluence level with strong support like in the previous day’s. It is a level which will be hard to break down.

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Today’s EURUSD Chart Forecast

We need to wait until the price make a clear signal.

Currently the price is on the support level which does not give us a nice opportunity. There is no bullish signal to buy and selling on the strong support confluence level is not smart idea.

EURUSD have different pip range on each trading session in a day and on each day in a week.

EURUSD Chart – Bullish Scenario

If the price manages to break down through support level at 1.07825 and retrace back with strong bullish price action signal we could see price trying break into the range.

If the price manages to break into the range area again we will need to wait until breaks out again.

EURUSD Chart – Bearish Scenario

Bearish scenario is more likely to happen because of the strength in the last couple of day’s.

We had a strong decline through the range area and then return back in the range area. Return in the range area did not last to long and the price could not managed to reach resistance area at 1.08846.

This suggests that the bears are stronger. Return in the range area on the Friday was just cash out and taking profit for the week end.

From the current point we should wait a pullback to 1.08275 or somewhere close to that area and strong bearish move which will break the support level 1.07825 and daily trend line.

 

While the price touched support level  1.07825 several times it means that it is trying to break that level.

We can see that the range area and daily support line are closing to each other. That means price have less space to jump between them.

When the space becomes to tight the price will break somewhere.

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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What do you think about EURUSD pair? Will it move down through support level and daily trend line or it will stay between confluence level and range area? 

Leave a comment with your idea or share this analysis with your friend traders.

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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