EURUSD Chart – Forecast for Wednesday, May 13

by May 13, 2020Setups

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EURUSD trading pair chart shows us that we are back in the range area. Return from the support level 1.07825 was initiated by the inside bar and two strong bullish candles.

Yesterday’s Summary

Support confluence level was to hard to break down and the price have moved up  back in the range area.

Yesterday was a little bit surprise because the price made a retrace all the way back in the range area. The price even touched the resistance area level 1.08846 which was above previous H4 candles high.

When the resistance level 1.08846 was reached a nice bounce back with H4 bearish Pinbar has happen. A strong bearish decline suggests that the price will see move down at least to the first support level at 1.08275 level.

EURUSD Daily Forecast 13_05_2020

But at this point I would be careful because daily candle shows a nice bullish engulfing bar.

Daily engulfing bar engulfs two previous day’s candles and it looks like it will move up.

Close of the daily engulfing candle is above close of the previous two candles which suggest that the market have finished the day with intention to move more up.

EURUSD Daily Forecast 13_05_2020

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Today’s EURUSD Chart Forecast

If we want to see price moving in any direction we need to see close of the H4 candle behind previous highs and lows.

For any scenario we need to see price moving out from the range area.

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

EURUSD Chart – Bullish Scenario

While the daily candle is stronger than H4 candle and price have closed above previous day’s candles high it is possible that the price will make small retrace to 1.08275 and make a bullish price action signal.

If we want to see price moving higher we need to have H4 candle close above 1.08846 level. This will suggest that the price have managed to overcome bearish pressure.

It will suggest move higher to the resistance level 1.09371 and more higher to the 1.09860 level.

EURUSD Chart – Bearish Scenario

If we want to see  price moving lower we need to have H4 candle close below 1.07825 level which is confluence level with horizontal support and daily trend line support.

From there we have first support level at 1.07356 and stronger support at 1.0700 level.

 

While we have price bouncing between 1.08846 and 1.07825 level, it is best to wait until the price breaks out.

With the break we will have stronger move which will give us a chance to take out larger portion of pips 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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