Saturday, May 22, 2021 9:36 AM EDT
The EURUSD price broke above $1.21800 on Tuesday and we had strong buying sentiment. Then the market reversed back down to find support on the $1.21800 which happened on Wednesday.
Reaching $1.21800 the price found support that pushed the price back up, but it did not last too long. It returned back down on Friday and stopped there.
Overall, the week was bullish and we had a breakout above strong resistance which now acts as a support.
What does this breakout and current market overview tell me?
It shows me the buyers are strong and the price is above strong support. Strong bullish candles are larger and cleaner and making new highs.
The price is now on the support level which I discussed last week it could reach before moving higher to $1.22800.
I like to look on the weekly time frame and what I can see it just started the move up. So I am expecting the price to move up and try to break above $1.22800.
Break below $1.21800 would push the price down to $1.20800, but I am not expecting to have that scenario.
When the price reaches $1.22800 you can expect to have some sell off because lots of sellers are waiting there and many buyers will get out of the market. Be careful around that level and prepare stop loss or at least lock your profits earlier to prevent losing profits.
I am bullish oriented and I will look at buying opportunities.
Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By ...
more
Disclaimer: Any Advice or information is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by author. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, spot Forex, CFD’s, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material provided by this author. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained in this article, is provided as general market commentary and does not constitute investment advice. I will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.
less
How did you like this article? Let us know so we can better customize your reading experience.
