It has been a hectic week for the FX world. I believe the weeks to come will be even more hectic and the old adage to sell in May and go away might not count this year.
Which pairs I believe are poised to reverse and why. Please find below my ideas and thoughts.
1) EURUSD
As you can see from the bottom red line, there is a major support level at 1.1500.
I am expecting to see price potentially falling below this level and then forming a bear trap.
I will be looking for a confirmation from price action and a pin bar or a bullish engulfing pattern to form. If such a candlestick appears on the daily chart, I might consider going long
2) GBPUSD
Here, I am looking for the same setup. The major support level is at 1.3000. I will be looking for the price going below this level and then be forming a reversal candlestick pattern.
This is an ideal scenario. Let’s not forget that we might see the price going lower and continuing the bearish trend.
3) AUDUSD
The third FX pair is AUDUSD. I am expecting the same setup. Price is really close to a major support level at 0.7300. I am looking at a potential reversal. If price confirms that expectation, I will be looking at possibly going long.
CONCLUSION
I have analyzed three USD pairs. They all exhibit similar characteristics and I believe that this might be more than just a coincidence. I will be closely following price action for a confirmation or a rejection of my expectations.
Happy Trading,
Colibri Trader
Guest post by Colibri Trader
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