EUR/USD – Weekly Outlook- May 31 2019

EURUSD Outlook & Technical Analysis for US Binary Options

Introduction

The EURUSD is currently in a bearish trend on the monthly chart, offering excellent short selling opportunities for US binary options traders. Read on for more insights into the fundamental and technical patterns reinforcing the bearish sentiments.

Fundamentals

EURO NEWS

EURO Business Climate

The European Commission published the business climate indicator, which is a monthly survey that estimates the cyclic in the EURO zone. High-Level points to a favorable cyclic state, while a low level shows an adverse business outlook.

The actual result released on Tuesday, May 28 came out at 0.3, a value less than the consensus which is at 0.40 and the past result at 0.42, a confirmation of negative outlook in the EUR zone.

USD NEWS

GDP Annualized

The United States Bureau of Economic Analysis presents the annualized GDP on May 30 at 12:30 GMT+2, which measures the economic value of all the goods and services.The US Annualized GDP shows the growth or decline rate of a nation’s economy.

The previous reading for this economic indicator is at 3.2%, while the consensus is at 3.1%. With that said, an actual reading that’s greater than the previous reading highlights bullish sentiment in favor of the USD, while a bearish reading shows negative emotion towards the USD.

Technical

EURUSD: Monthly Chart

EURUSD Analysis - Monthly Chart - May 31 2019

Coming from the highest time frame, the foreign exchange of the Euro is in a downward spiral for 15 months, starting from a breakdown of hidden bullish demand on April 02 ’18. 

The bearish trend which suites positional traders offered short selling opportunities on June 01 ’18, February 01 ’19, March 01 ’19, and May 01 ’19, signaling selling pressure and breakout of buyers support.

EURUSD: Weekly Chart

EURUSD Analysis - Weekly Chart - May 31 2019

From a weekly chart perspective, the major currencies EUR and USD align with the candlestick formation on the monthly chart by signaling a descending triangle pattern.

The upper band of the descending triangle was confirmed by breakdown of bullish accumulation patterns of December 24 ’18, February 25 ’19, and May 06 ’19.

EURUSD: Daily Chart

EURUSD Analysis - Daily Chart - May 31 2019

The daily chart of the EURUSD presented excellent swing trading opportunities starting with a breakdown of bullish accumulation on April 16 ’19, with the stop loss slightly above the 1.13239, and plunged by 1.50%.

A similar bearish swing was signaled by another breakdown of bullish accumulation on May 14 ’19 allowing traders to place their stop loss above the 1.12636 resistance. A breakout of bearish accumulation resistance on May 23 ’19 creates support at 1.11071.

EURUSD: 4HR Chart

EURUSD Analysis - 4H Chart - May 31 2019

Sudden increase in bullish volatility on the 4hour time frame forced the pair above bearish accumulation resistance on May 23 ’19 08:00. The price blew beyond the resistance level and as a result absorbed the price increase, before the price collapse on May 27.

EURUSD: 1HR Chart

From an intraday 1hour time frame, the pair signaled a regular bullish divergence on May 23 presenting early entry for the breakout of bearish pressure resistance level on the 4hour charts.

An opposite regular bearish divergence pattern signaled on May 27 ’19 23:00 aligned with the breakout of bullish pressure on the 4hour time frame. Further into the 8th hour of May 27 the pair again triggered a breakdown of bullish accumulation.

Conclusion

As the month comes to an end, if the month of May close bearish within the high-low range of April, then we should look forward to an increase in selling pressure. Going forward, we’ll be on the lookout for swing trading opportunities on the 4hour and daily time frames. 

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