$EURUSD and $GBPUSD Seasonality for the month of May. $USD gets stronger? Seasonality is a great scanner as long as you verify everything through technical analysis. It is a great place to get some good trade ideas. This is one reason, we developed the mobile app Alert trades.
In the mobile app, we provide the “Top Picks” every month. Here is the website link: https://www.alerttrades.com/top-picks. This month, we noticed something interesting for $Currencies / $Forex market. It is shown below:
Notice, the currency $USD was located in in the list a lot compared to other currencies. It showed that the $dollar was going to get stronger compared to other currencies. This was worth investigating with the charts.
Below is the weekly chart for the $DX future instrument provided by tradestation.
The chart shows we are at a minor support but there is a high probability of the major support at 97.623 to be reached since the instrument is going through a major pull back.
Since the $DX instrument is heavily biased with $EURUSD, we want to investigate which pair would be best where the $USD would start a trend if it got stronger.
Now that we know the instrument, let’s check the seasonality stats for $GBPUSD which is shown below:
Here is the seasonal statistics for the $EURUSD.
Let’s look at the charts now.
Below is the 240m chart for the $EURUSD. The chart is bullish being held up by a support at 1.08848. Until this support is broken, we can’t look for a bearish trade for this instrument. Momentum is not longer bullish due to the consolidation pattern so the probabilities have increased for price to break the support.
Below is the $GBPUSD 240m chart. The chart shows the instrument is bullish being held up by a support at 1.28858. Until the support is broken, we can not look for a bearish trade.
The momentum right now is strong bullish unlike the $EURUSD.
In conclusion, the seasonality shows that the $USD is going to get stronger against $EUR and $GBP. However, the charts are still bullish and maintaining key supports. Until these supports are broken, the seasonality can not occur. Patience is the key right now.
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