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.
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
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.
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.
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.
Guest post by Colibri Trader