The beginning of the week is an opportunity to analyse the forex market more closely and look for opportunities for the new week. Today, I was interested in two currency pairs due to the appearance of outside bar formations on the charts of these instruments.
EURUSD – bullish engulfing – outside bar
The EURUSD pair has been moving in an uptrend since October 2022. In February this year, a downward correction appeared with a range of more than 500p, at the lowest point of the correction the declines reached 1.0520. Since the beginning of March the pair returned to the main trend, the increases were temporarily stopped by the supply zone (1.1067). Currently, the price is moving northwards, the last candle on H4 formed a bullish engulfing, which may herald further increases. An upward breakout from the formation may push the price towards the unbeaten supply zone and higher to the support/resistance level at 1.1180.
USDCAD – bearish outside bar
A bearish engulfing formation appeared on the USDCAD pair. The price is currently in the area of this formation. When the formation was formed, a downward bar appeared on the MACD oscillator. If a bottom breakout occurs and the MACD remains “red”, it may accelerate the declines and the correction of the recent increases may reach the support and resistance level at 1.3490.
I did both analyses based on the PA+MACD strategy, the assumptions of which can be found in this article.
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The above analysis is based on the PA+MACD strategy, a detailed description of which you can read HERE . I will talk more about the PA+MACD strategy applied to these currency pairs during the live trading sessions which you can attend from Monday to Friday.
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