Official site of the most popular forex trading expert advisor...

Trading Signal for EUR/USD on May 24-25, 2022: sell in case of pullback at 1.0742 (4/8 Murray - overbought)


Euro Dollar (EURUSD) in the American session is trading above the 200 EMA and above the 21 SMA located at 1.0615.

The euro is in a bullish phase and is technically trading above these two moving averages (200;21). The upward acceleration is likely to continue in the coming days and the currency pair could reach the resistance zone of 5/8 of Murray at 1.0864.

The EUR/USD pair continues to benefit from the words of ECB President Christine Lagarde, who clearly said that the negative rate monetary policy is coming to an end.

According to the 4-hour chart, we can see that the Eagle indicator has reached the extremely overbought zone around 95 points. This is a clear sign of a technical correction. As long as the price consolidates below 4/8 Murray, we could see a drop towards the 200 EMA at 1.0654.

On the other hand, on the 4-hour chart, we can see the uptrend channel formed since May 13. The euro is likely to make a technical correction towards the bottom of the trend channel around 1.0620 which coincides with the 21 SMA and 3/8 Murray.

In the short term, it is expected that the euro can reach the zone of 5/8 Murray around 1.0864, but first, we must wait for a technical correction towards levels of 1.0654 or 1.0615. Around this area, there will be a good opportunity to buy the euro with targets at 1.0742 and 1.0864.

In case of a daily close above 1.0742 (4/8), we could expect the euro to continue its rise and the price could quickly reach 1.0864 and then make a technical correction. Therefore, as long as the euro trades below 1.0742, we have a clear sell signal.

Our trading plan for the next few hours is to wait for the euro to reach 1.0742 to sell with targets at 1.0654 and 1.0615. In the event of a technical bounce at 1.0620, we will have an opportunity to buy, targeting 1.0865. The Eagle indicator is showing signs of exhaustion and a likely technical correction in the coming days.

Trading analysis offered by RobotFX and Flex EA.