Forex FOREX PRO WEEKLY, May 24 - 28, 2021

Sive Morten

Special Consultant to the FPA
Morning folks,

So, it seems that our worrying about long entry were not in vain as today EUR forms more bearish signs on daily chart. As yesterday, we still think that it would be better to wait either deeper retracement or upside breakout of 1.2265 COP level. In this case EUR becomes aiming on previous top, which should make long entry relatively safe.

Daily trend has turned bearish and now we have reversal candle on top, suggesting deeper retracement.

Also we should not forget about 4H wedge pattern that this time probably will work in classical direction. Our intraday bearish setups has worked fine - DRPO played out and price now stands at the bottom of the wedge.

Here we need to keep an eye on price action inside the wedge pattern. If we will see early downside reversal - it becomes early sign of possible downside breakout.

So, we're still waiting with long positions. Those who have taken shorts yesterday could keep working with it. For new short position you could use daily reversal bar as background and current upward retracement on hourly chart. Here we have bullish DRPO in progress that should push price to some resistance area, supposedly re-test 1.2220 area. So, you could consider short entry as well.

Sive Morten

Special Consultant to the FPA
Morning everybody,

So, EUR is trying to go lower and we keep watching on this attempt, following the trading plan that we've specified yesterday.

Meantime, we have few changes on our long-term AUD setup and its time to update it as well. On AUD we're waiting deep retracement and appearing of reverse H&S pattern on monthly chart. Now we've got bearish grabber on weekly and it could become the starting point of deeper downside action:

On daily chart you should remember the H&S that we're watching for few weeks already. Now, with weekly grabber, finally it could start working. So, it is time for decision making if you have bearish view on AUD:

Right on the top of daily right arm we have another H&S pattern, that is clearly seen on 4H chart:

One of the way to trade it - by classical approach, with the stop above daily right arm, which is also weekly grabber's top.