Forex EUR/USD Daily Video, May 05, 2020

[Sive Morten]

Good morning,

EUR hits our first area for long entry around 1.09 level. Now we keep an eye on confirmation of reversal out from there:

 

[soul rebel]

Thanks for your update Sive
If you get the chance I would love to have your current view of GBP/USD, does there appear to be a greater H&S developing on the 4hr chart in your opinion?

 

[Brett Reynolds]

Certainly not looking at buying the EUR against any currency at the moment..!??

 

[Sive Morten]

Thanks for your update Sive
If you get the chance I would love to have your current view of GBP/USD, does there appear to be a greater H&S developing on the 4hr chart in your opinion?

Rebel, as you know we have bullish context on weekly chart. So, our conception has not changed since then. In two words, the retracement that we were watching previously hardly will happen as market is showing preparation for upward breakout:

This type of reaction on strong resistance level and XOP target makes me think that it would be better to avoid any short positions by far...

 

[soul rebel]

Thanks for your input Sive,
I'm considering taking a long position at COP on 4hr chart which coincides with support line, with a stop just beyond OP. Do you think that is a valid set up?
Thanks
Viresh

 

[Sive Morten]

Thanks for your input Sive,
I'm considering taking a long position at COP on 4hr chart which coincides with support line, with a stop just beyond OP. Do you think that is a valid set up?
Thanks
Viresh

The strength of this setup is moderate, as we do not have strong directional patterns, mostly it relies on trend line. But, taking in consideration other bullish things that we've talked about (i.e. market doesn't want to go down and weekly context is bullish) - you could try, why not. Risk is acceptable. Besides, we have "222" Buy"...