EUR/USD weekly price analysis based on traders behaviour

By QuintoTrader | Teacher Forex School | 17 Feb 2021


EUR is a currency of the european union nations while usd is a currency of the USA nation. Both currencies are used to conduct daily transactions both online and offline for those two nations as well as by international tourists. On Monday the 15th of February,one EUR started trading at around 1.21176 USD. On Tuesday the same week,the price managed to go as high as 1.21695 USD. The price went down again to around 1.20300 on Wednesday the same week. This upward and downwards movement of this paired currency is as a result of traders behaviour which can further be explained as below;     Traders behaviour   Traders can affect the market in both upwards and downwards movement. Since EUR/USD is a stabled currency,we can say that an upward movement will be as a result of the number of sellers being more than the number of buyers so that the market can profit with those few buyers and make those many sellers make some losses when they exit the market. On the other hand,when the market for EUR/USD is moving downwards,we can say that the buyers are more than the sellers so that the market makes profit by moving downwards with those few sellers and cause those many buyers to make some losses. Since there is possibility of the market for this paired currency to be bearish until Friday, we can therefore further explain it as from below;   1. EUR/USD bearish price analysis based on traders behaviour   In a bearish market,the EUR/USD currency will be moving in a downwards direction. On Monday the 15th of February,EUR/USD currency started trading at around 1.21176. By Tuesday the same week,the price managed to go as high as 1.21695. The price then went down to around 1.20300 on Wednesday the same week. This market movement is being indicated as from the candle sticks chart below;   5e374b36a7e934ea935a871d717bbec4185fa92b2dc7907a2b79316f81e35582.png

  The above is the EUR/USD market. Two points are being indicated. There is point A and point B. Before point A, the market can be seen to have moved all the way to around 1.21700 from its previous low of 1.21170.  At 1.21700, there are more number of buyers placing their long positions in the hope that the market will continue moving upwards. This causes the market to reverse and moves to point A downwards at around 1.21000. At point A, there are more sellers who again are placing their short positions in the hope that the market will continue moving downwards. This causes the market to gain support and moves upward to around1.21170. At 1.21170,there are many number of buyers placing their buy positions in the hope that this upward movement will continue. This causes the market to reverse again and moves downwards to around 1.20402 at point B. If the number of buyers will continue exceeding the number of sellers,there is possibility of the market to continue moving downwards the whole of this week to around 1.19600. You can continue being short and wait to collect your profit. Make sure that your running position has a good strategy and risk management being applied.            

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QuintoTrader
QuintoTrader

Trader, contentpreneur and entrepreneur. Also founder and CEO @ teacher forex school


Teacher Forex School
Teacher Forex School

Teacher forex school provides individual with training regarding to forex trading and cryptocurrency trading. We also share trading ideas online for both crypto and forex market

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