Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

EUR/USD: Second Leg Up to May High

Published 07/12/2023, 09:38 AM

EUR/USD Daily Chart

  • The Globex market formed a strong upside breakout during the CPI report released at 5:30 AM PT this morning.
  • The EUR/USD formed a strong upside breakout during the report and is currently getting a second leg up.
  • The U.S. Session likely has a decent size gap up. This increases the odds that the first reveal down will fail, and the bulls will get a second leg up.
  • Since this gap up is late in a rally on the higher time frames, there is an increased risk that the market will reverse down. This means traders should be aware of the risk of exhaustion following this morning’s gap up. Therefore, today may have a lot of trading range price action.
  • As always, traders should expect the first 6 – 12 bars to have a lot of trading range price action on the open.
  • Since the gap up will likely be large, traders should be aware that the market will probably have to go sideways and get closer to the moving average.
  • If bulls can get consecutive strong bull trend bars on the open, the market may form a brief bull trend from the open. However, it will likely not last all day.

Latest comments

Thank you Professor
thanks for your analysis
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.