Frano Grgic Blog | EURUSD – Back In The Wedge | Talkmarkets
Forex trader, Market Analyst
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Frano Grgić is a Forex trader since 2009 and he shares his experience and knowledge about trading.

Like many Forex traders, Frano has earned a significant share of his knowledge the hard way by practicing and learning on errors. Technical trading and trading psychology have always ... more

EURUSD – Back In The Wedge

Date: Saturday, May 23, 2020 11:45 AM EDT

EURUSD Chart - Friday’s Summary

Prices have managed to come back down inside the wedge pattern and it has reached first support level. As discussed yesterday for bearish scenario price have returned back and stopped right on the upper level of the previous range area.

It was pretty easy drop down with just 2 bearish candles which suggest there were no buyers. While it was Friday many buyers that push the price to the high level have gone out to cash out and protect their profit.

As said, Friday is the day when we cannot take market behavior as a possible continuation because of taking profit scenario. To have better and more clear picture we need to wait Monday. On Monday traders are entering into the market and making possible trend for the rest of the week.

EURUSD Chart Forecast

Price is back in the wedge pattern and it is on the support level. H4 chart closing price tells us that the price is gone down enough to make a test move back in the previous range area. This could happen if price reverse back to the previous confluence level at 1.09371 and from there make a bearish price action signal.

On the daily chart we can see that the price have closed below previous bearish candle lows which suggest that the price could go more down. Because of long price drop we could see pullback before trying moving more down.

EURUSD Chart – Are There Any Bulls?

Since last Tuesday bulls had a lead and they pushed the price all the way up to the previous resistance. Only on Friday they have lost momentum because of traders going out from the market or because they have lost strength.

If they have strength, on Monday we will see price moving up to the confluence level around 1.09371 level.

If they manage to break through that confluence level it will mean they are outside of the wedge pattern and there is nothing to hold them back. They could reach higher levels and first one is 1.10373.

I would like to wait Monday and see what happens because market will make a move and it will make more clear path for future movements.

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