As the title says, the EUR/USD weekly chart shows a nice Bullish Engulfing bar on the weekly chart. This could be a potential Forex trade set up for the coming week.

The exciting thing about this particular set up is that it is at a key level…

EUR/USD is at the same level that it reversed in 2016. This could be a good opportunity to consider a long trade.

We can see too that the price has fallen sharply towards this level which is often the case before a strong bounce. Also if we look at the monthly chart, although we still have a week left in the month ang anything can happen, we have a nice pin bar forming in May.

A good idea for entering a trade like this is to move to a lower time frame such as the 4 hr, there will often be a pull back in line with the bearish candle before breaking out in line with the new upwards trend (in this case). By doing this you can minimise your stop distance (stop is on the 4hr) and maximise your profit (target is on the weekly).

As always, make your own trading decisions. I am merely pointing out potential opportunities and this is not financial advice.

The best of luck!