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EUR/USD One Step Away From a Major Buy Signal

By:
Tomasz Wiśniewski
Published: May 20, 2022, 08:27 UTC

The situation on the Forex market changed dramatically this week and you can see that clearly through the EURUSD.

EUR/USD One Step Away From a Major Buy Signal

In this article:

Technical Analysis for the Euro vs US Dollar

Last week ended with a massive drop and the price closing at new long-term lows. This week was different, the price reversed and was aiming higher almost every single day.

EUR/USD 4 hour chart

This week’s rise created two, very convincing bullish patterns on the chart. The first one can be seen on the weekly chart, and is a bullish engulfing pattern. The second one can be seen on the H4 and is a handsome Inverse Head and Shoulders pattern. The formation is active as we’ve already managed to break the neckline (blue).

Trading Strategy for the EUR/USD

The situation looks really great but there is one thing missing. The price is still below the mid-term down trendline(red). It may still scare some buyers. Once the EURUSD manages to break the red resistance, we’ll get a full-fledged buy signal.

The price bouncing of the trendline and dropping below the neckline is still possible, but currently less likely to happen. Our view on the EURUSD is bullish.

Para ver todos los eventos económicos del día le recomendamos visitar nuestro calendario económico.

About the Author

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.

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