#AN001: Geopolitical Situations and Forex Impact
Hi, I'm Forex Trader Andrea Russo and today I want to talk to you about how the recent geopolitical turmoil is impacting global currency markets. In this week of May 2025, significant events are shaking up the global economic and political balance, with direct repercussions on Forex.
Geopolitical Overview: Rising Tensions
India-Pakistan Crisis
Following the terrorist attack in Pahalgam on April 22, which left 25 Indian tourists dead, relations between India and Pakistan deteriorated rapidly. Artillery exchanges along the Line of Control, diplomatic expulsions and the suspension of the Indus Waters Treaty characterized the following weeks. Although a ceasefire was reached on May 10, the situation remains volatile, with significant impacts on air traffic and regional trade routes.
Wikipedia
Iran-US Nuclear Stalemate
The nuclear talks between Iran and the United States are at a standstill. Tehran refuses to stop enriching uranium and negotiate on its missile program, while Washington insists on these conditions. Iran, under economic pressure from sanctions, may seek support from China and Russia, although these allies face their own geopolitical challenges.
Reuters
"Golden Dome" and US Trade Policies
President Donald Trump has announced the "Golden Dome" project, a $175 billion missile defense system inspired by Israel's Iron Dome. Meanwhile, protectionist US trade policies are generating uncertainty in global markets, with the European Union proposing a "Buy European" strategy to strengthen the bloc's economic autonomy.
The Times of India
Financial Times
FX Impacts: Currency Market Analysis
EUR/USD: Downside Pressure
The euro is under pressure due to trade tensions with the US and domestic economic uncertainties. Proposals to reform public procurement and European defense initiatives could affect investor sentiment. The ECB has highlighted risks to financial stability arising from these tensions.
USD/JPY: Yen Safe Haven
Amid global uncertainty, the Japanese yen is strengthening as a safe haven currency. Tensions in the Middle East and US policies are pushing investors towards safer assets, supporting the yen’s appreciation.
GBP/USD: Towards a New UK-EU Relationship
The UK, under Prime Minister Keir Starmer, is seeking to re-establish closer relations with the European Union, without rejoining the bloc. This pragmatic strategy could reduce economic uncertainty and positively impact sterling in the medium term.
USD/CAD: Influence of Oil Prices
The Canadian dollar is affected by fluctuations in oil prices, influenced by uncertainties in the Iran-US negotiations and tensions in Ukraine. Canada's dependence on energy exports makes the CAD sensitive to these developments.
EURUSD trade ideas
No change for EURUSDEURUSD is holding above the first target and remains within the bullish trend.
The next key resistance levels are at 1,1358 and 1,1456.
The goal is a breakout above the high at 1,1573 and a continuation of the bullish move.
A temporary pause or slight correction is possible, but the main scenario remains unchanged.
Follow the trend and look for entries with good risk-to-reward ratios.
Success is a matter of discipline and consistency!
EURUSD - Potential Buy (Day Trading)Hi Traders,
How about we BUY CMCMARKETS:EURUSD !
Price Action Analysis:
4hr Chart: Price has been in a corrective phase since April 2025, which may have provided enough of a discount to attract buyers.
1hr Chart: I’m monitoring how price reacts following the buying pressure that emerged on May 13th, 2025.
Lower timeframe: Watching for the right timing to enter the trade.
Good Luck!
STUDY, STUDY, STUDY . Lorenzo Tarati :)
EURUSD H4 | Bullish Reversal Based on the H4 chart analysis, the price is approaching our buy entry level at 1.2265, a pullback support that aligns with the 38.2% Fibonacci retracement.
Our take profit is set at 1.1426, an overlap resistance.
The stop loss is placed at 1.1193, a pullback resistance.
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EURUSD Trade Plan – Two Possible ScenariosPrice is currently consolidating below resistance at 1.1345.
✅ Scenario 1: Breakout Continuation
If price breaks and closes above 1.1345 with strong bullish momentum, I will look for a breakout buy with targets toward 1.1375–1.1400.
✅ Scenario 2: Deeper Pullback to Buy
If price rejects 1.1345 and pulls back toward the 1.1300–1.1310 support zone (confluence with EMA zone), I’ll wait for bullish confirmation to enter long.
❌ If price breaks below 1.1300, I’ll wait and reassess the structure.
Trend remains bullish. Focus only on long setups for now.
EURUSD Bearish Setup📌 Market Structure & Setup Summary
Major Supply Zone Rejection (Red Zone at Top):
Price tapped into higher timeframe supply zone at 1.13755 (red box).
This was a buy-side liquidity grab just above the previous high → textbook distribution zone.
Now price is respecting that zone and rejecting it with bearish momentum.
Bearish Rising Channel Broken:
Red trendlines show a rising wedge → often leads to a bearish breakout.
Price is currently breaking out of that wedge to the downside.
Premium Pricing Confirmed:
Price was pushed into the premium zone (above equilibrium), inducing buy orders → now being reversed.
🔄 Trade Plan (Short Bias)
✅ Entry: Activated inside the red supply zone after confirming wick rejections and structure shift.
🛑 Stop Loss: Above the red supply zone (above 1.13755).
🎯 Targets:
TP1 → 1.12545: Structure support and breaker block.
TP2 → 1.11663: Previous demand zone and trendline intersection.
TP3 (Optional) → 1.11002 – 1.10610: External liquidity + trendline + FVG zone.
📉 RR Ratio: Estimated 1:4 to 1:5+ if TP2/TP3 hits.
⚠️ Key Confluences
🔹 Bearish break of rising wedge = structural shift.
🔹 Rejection wick inside red supply + BOS.
🔹 TP zones aligned with previous OB, breaker blocks, and liquidity pools.
🔹 News/volatility likely during the double blue vertical lines, so expect reaction spikes.
🚫 Invalidation Criteria
If price closes above 1.13755, the idea is invalid.
Watch for manipulation or false breakouts during high-impact news.
🔮 Market Forecast
If current rejection holds, expecting price to seek sell-side liquidity from 1.12545, then 1.11663, and possibly lower. This is a classic distribution > BOS > retrace > expansion sequence.
Bearish reversal?The Fiber (EUR/USD) is rising towards the pivot and could reverse to the 1st support.
Pivot: 1.1424
1st Support: 1.1263
1st Resistance: 1.1557
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Bullish bounce off overlap support?EUR/USD is falling towards the support level which is an overlap support that lines up with the 38.2% Fibonacci retracement and could bounce from this level to our take profit.
Entry: 1.1267
Why we like it:
There is an overlap support level that aligns with the 38.2% Fibonacci retracement.
Stop loss: 1.1140
Why we like it:
There is a pullback support level that lines up with the 71% Fibonacci retracement.
Take profit: 1.1425
Why we like it:
There is a pullback resistance level that lines up with the 71% Fibonacci retracement.
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EURUSD - Buy Trade - 21/05/2025Fundamentals: The euro has strengthened against the U.S. dollar, reaching the 1.1360 price zone during European trading hours amid U.S. fiscal concerns.
Technical: The pair remains in a bullish trend across all timeframes, with key resistance at 1.1360 and support at 1.1300.
EURUSD Shows Signs of Reversal as Momentum Shifts HigherThe EURUSD is beginning to show signs of a reversal as momentum shifts and moves above its 10-day exponential moving average. The EURUSD has recently experienced a significant move since early February, rising to a high of 1.147, which resulted in it becoming overbought, touching its upper Bollinger band, and pushing the RSI above 70. Now, after a brief pullback, the EURUSD appears poised to make another push higher.
The EURUSD has now moved above its 10-day exponential moving average and its 20-day simple moving average. Additionally, it appears to have broken above a minor downtrend that began on 28 April. If this momentum continues, EURUSD could rise back towards resistance at the upper Bollinger band, around 1.145, and perhaps even retest the 1.157 peak seen on 21 April.
Perhaps more importantly, a short-term trend reversal is underway, with the Relative Strength Index breaking above a short-term downtrend that started on 21 April. If this trend break holds, it would indicate that the recent decline in EURUSD has likely ended, setting the stage for another move higher.
Also supporting a potential rebound and move higher is the successful bounce of EURUSD off its 38.2% retracement level, measured from the lows established on 3 February to the highs of 21 April. Combined with the factors mentioned earlier, this suggests the next move for EURUSD is likely upwards.
However, if support fails to hold and EURUSD falls below 1.105, it could decline further towards the next support at 1.075, which corresponds to the 61.8% retracement level from the 3 February lows.
Written by Michael J. Kramer, founder of Mott Capital Management.
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EURUSD – CME Gap and 0.786 Fib Align at Key Demand ZoneEURUSD has been trading with a strong bullish tone recently, breaking through previous resistance levels with conviction. However, after the latest impulse move to the upside, the market is now showing signs of exhaustion. Price has begun to pull back in a controlled manner, creating a potential opportunity for a deeper retracement into a more favorable area of interest. This kind of pullback is typical after an aggressive rally, and right now, there’s clear evidence that price may need to revisit lower levels before any further continuation higher.
Technical Confluence at Its Best:
Below the current range, there is a high-probability demand zone that combines three powerful elements: a well-respected historical support area, a CME gap that was left unfilled during the previous rally, and a 0.786 Fibonacci retracement from the latest bullish leg. These levels don’t just sit close to each other, they stack right on top of one another, forming a dense pocket of liquidity and technical confluence. The market often gravitates toward these types of zones to rebalance price and fuel the next directional move.
Short-Term Bearish Setup – Let Price Come to You:
The expectation is for price to dip lower in the short term. This would allow the market to tap into the unfilled CME gap and sweep the liquidity resting below the current structure. Traders who went long late in the move are likely to have their stops sitting just beneath recent lows, and this sets the stage for a classic inducement and stop hunt scenario. Price doesn't need to collapse, just a healthy retracement into this confluence zone to rebalance and refill the inefficiency before the real move begins.
Bullish Reversal Expectations:
Once price fills the CME gap and reaches into the 0.786 Fib retracement level, the focus shifts back to bullish. If the market holds this support cleanly and shows early signs of strength, like a displacement back above short-term structure or a strong engulfing candle, this could signal the beginning of a new upward leg. Given the context and momentum from the previous rally, it’s reasonable to anticipate a strong reaction that could drive price back toward the recent highs or potentially even higher.
The Psychology Behind the Setup:
This type of setup is a textbook example of how smart money operates. Price leaves a gap, traders pile in on the breakout, and then the market retraces to fill the imbalance and shake out weak hands before resuming the trend. Understanding the logic behind the CME gap, the liquidity below price, and how the Fib level ties everything together gives this setup depth. It’s not just about lines and zones, it’s about how liquidity flows through the market and how structure sets up to trap and reward.
Conclusion:
Patience is key. Rather than chasing the bullish momentum at current levels, the plan is to wait for price to revisit the zone where the CME gap, historical support, and the 0.786 Fib level align. That’s where the real value lies. If the reaction from this zone is clean and confirms strength, it offers a high-probability entry for the next leg up. No need to force anything, let the market come to you, then execute with precision.
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Thanks for your support!
If you found this idea helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀
From a short-term perspective, the bullish trend is expected to The EUR/USD exchange rate continued its upward momentum during the European session and is currently trading near 1.1320. As the US Dollar Index remains under pressure, the EUR/USD rate has gradually climbed. Market sentiment tends to seek alternatives to the US dollar and optimistic expectations of a potential peace agreement between Russia and Ukraine. The euro has performed strongly recently, mainly benefiting from two factors: the market's search for US dollar alternatives and optimistic expectations that the Russia-Ukraine conflict may reach a ceasefire agreement. According to Francesco Pesole, a foreign exchange analyst at ING, the overall European currencies have shown good momentum, with the Swiss franc and Swedish krona ranking among the top in the G10 currency list this week. This reflects that the market is (on one hand) seeking alternatives to the US dollar (Swiss franc), and (on the other hand) may be optimistic about the Russia-Ukraine peace agreement (Swedish krona, Norwegian krona). EUR/USD may continue to test the resistance range of 1.1410-1.1460. If US political uncertainty intensifies or economic data weakens, a breakthrough cannot be ruled out. However, positive US dollar news that may emerge at the G7 summit in Canada may limit the upside of EUR/USD before the end of this week.
In the market, there are no absolutes, and neither upward nor downward trends are set in stone. Therefore, the ability to judge the balance between market gains and losses is your key to success. Let money become our loyal servant.
EUR/USD Dual BUY LIMIT Strategy – Intraday + Swing Setup💬 Description:
This idea is based on a bullish structure confirmed across multiple timeframes (5m, 15m, 30m, 1H, 4H, Daily). The market shows strong buying pressure supported by clear technical signals:
🧠 Technical Justification:
Ichimoku Cloud: Price is clearly trading above the Kumo in all major timeframes, with bullish Tenkan/Kijun crossovers and strong Chikou Span alignment.
VWAP: Price remains consistently above VWAP, confirming intraday bullish control.
Moving Averages: All MAs (MA5 to MA200) are aligned in a bullish direction across 1H to Daily charts.
Momentum Indicators:
RSI remains between 58–69: bullish but not yet overbought.
MACD positive across all major TFs.
CCI above 100 on 1H and H4: indicates strong price momentum.
Pivot Points: Price action is holding above daily pivot and testing resistance zones (R1-R2), showing strength without overextension.
Conclusion:
This setup reflects a technically healthy bullish trend with multiple layers of confluence. There’s a strong probability of continuation to upper resistance levels, especially if price maintains structure above the VWAP and Ichimoku cloud. Perfect scenario for both intraday and short swing setups with favorable risk/reward potential.
Why I think EURUSD will sell this week...Technical AnalysisHey Rich Friends,
Happy Monday! I wanted to share my analysis on EURUSD and why I think it will sell. This is only a technical analysis so please check the news and cross-reference your own charts. Here is what I am looking at:
- Momentum has picked up for the sellers after the swing high was hit. This means a downtrend has started and is picking up.
- The market structure was broken on the downside on M15 and H1. There was a retest and previous support became resistance.
- The stoch is facing down, both lines have crossed below 80, slow line (orange) is above the fast line (blue) which is a bearish confirmation for me.
Additional information:
- I will wait for both lines of the stoch to cross below 50 to confirm the down trend.
- I will use previous highs as my SL and previous lows as my TPs.
Good luck if you decide to take this trade, let me know how it goes.
Peace and Profits,
Cha
Encounter Resistance And Reverse Direction Educational Forex Trading Insight – EUR/USD Potential Bearish Scenario
This content is intended for educational purposes only and aims to help traders understand how a possible sell setup in the EUR/USD currency pair might be analyzed. It is not a signal or financial advice, but rather a breakdown of a potential market scenario based on technical observations.
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Currency Pair: EUR/USD
Market Outlook: Bearish (Short Position Scenario)
Suggested Sell Zone:
A possible area of interest for initiating a short position lies between 1.13430 and 1.13520, where the price may encounter resistance and reverse direction. This zone could offer a favorable risk-to-reward setup for experienced traders identifying signs of bearish confirmation.
Risk Management – Stop Loss:
A stop-loss order should be placed based on your personal trading strategy and risk tolerance. It is generally advisable to position it above the resistance area to account for potential volatility or fake breakouts.
Potential Price Targets:
First Target (TP1): 1.13159 – Near-term support level
Second Target (TP2): 1.12970 – Deeper retracement zone
Third Target (TP3): 1.12800 – Stronger historical support
Additional downside may develop if bearish momentum continues beyond these levels
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Important Notice:
This analysis is for informational and educational purposes only. Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. Always conduct your own research (DYOR) and consider consulting a licensed financial advisor before making any trading decisions. Proper risk management and discipline are essential for long-term success in the markets.