Forex Price Action Setups (NY Close) May 2nd

Verified Profitable Trader


EURUSD Flag Pattern Under Threat
Being one of the choppiest pairs from a price action perspective has been the EURUSD lately, which has been a coin flip on a daily basis for the last 20 days whether it was going up or down for the day.  Out of the last 20days of trading, only 4 days have had a trading range from high to low of 120pips or greater, with today being one of them.

What is interesting to note is today’s low challenged the daily flag pattern which we talked about on April 12 in our forex price action setups post.  Price has been confined in this range and we are not sure it will stay bottled up much longer, but we are leaning towards the bearish side as the price action angle is weakning.  

If bulls want to enter the market, there is a short term opportunity on yesterdays lows targeting the 1.3200 level with a tight stop below.  However, if the flag breaks and we have a daily close below it along with bearish impulsive price action to follow after the ECB meeting tomorrow, then we expect price to test the bids (and the Chinese Central Bank propping up the pair) at 1.3050 and 1.3000.

forex price action impulsive price action may 2nd

For those wanting to learn rule based price action systems, access to the traders forum, lifetime membership & more, check out my Forex Price Action Course.

Upcoming Economic Announcements:

AUD AiG Performance of Service Index 23.30GMT 19.30EST
CNY China Non-manufacturing PMI 01.00GMT 21.00EST
GBP Purchasing Manager Index Services 08.30GMT 04.30EST
EUR Euro-Zone Producer Price Index (YoY) 09.00GMT 05.00EST
EUR European Central Bank Rate Decision 11.45GMT 07.45EST
USD ISM Non-Manufacutring Composite 14.00GMT 10.00EST

Make sure to check out my latest article on 5 Mantras For The Developing Forex Trader

Want More? My private members get all my trade ideas & market commentary 4x per week. Click here to become a member.

Related Article