EURUSD is one of the highest traded currency in the Forex market, for various reasons:
- High Volume
- Overall trend strength
Today we are going to see the technical analysis for the week starting on May 24, 2020.
In the daily chart, we can see a wedge pattern building up from previous weeks, then retested the top and now got upward strength to the 1.100 resistance.
With multiple tests on the lower part of the wedge, it gives us a stronger trend. It consolidated between 1.08 and 1.09 only to break into the 1.09 to 1.100 zone. Retesting the 1.100 resistance again.
Here you can see the rally of 1.67% upward until the 1.100 top.
If we take a closer look in the 4h timeframe it retested 1.100 only to go down and touch the 1.09 again.
We can see the tendency to rally up consolidate and test again. In the next few days, we can expect a horizontal channel to form until we have a clear break of the 1.100 level.
Seeing the bigger picture we can confirm the strength of that 1.100 resistance level. And a horizontal movement. Still could be a good opportunity to trade in lower time frames between 1.09 and 1.100.
For now, there isn't any confirmed break to state a clear tendency. Still, we have the wedge formation as good support.
Let's see how it plays out the rest of the week.
Stay updated for the next week's analysis on EURUSD.
And happy trading.
Disclaimer: this is purely trading advice. Is not meant to signal any type of trade or guarantee any result.