Technical Analysis for EURUSD for 16th May 2023
Euro Remains Bearish Despite Gains, Sell Trigger at 1.0840
Past Performance of EURUSD
Prices were in range by May 15 close. Even though Euro gained, prices are inside the May 12 bar, and sellers are in control. In the short term, the May 12 wide-ranging bear candlestick defines the immediate term. As such, key levels to watch would be 1.0940 and 1.0840.
EURUSD Technical Analysis
In a bear breakout formation, Euro bulls have failed to push higher, reversing losses. Therefore, USD bulls are in control. As long as prices are below $1.0940, every attempt higher with lighter volumes may be an opportunity to dump, targeting 1.0840 and later 1.0730. Conversely, any confirmation of the May 12 bear bar, driving prices below last week’s lows, will continue recent losses. If the breakout from the current thin consolidation is with rising volumes, prices could drop even further. However, if gains exceed May 12’s highs with high participation, prices could rise to 1.1000.
What to Expect from EURUSD
Prices are consolidating in lower time frames, and the immediate trend is undefined. The primary trend is bearish, and USD bulls are in control despite yesterday’s rejection of sellers. If anything, the upper limit remains at 1.0940 and 1.1000, respectively.
Resistance level to watch out for: $1.0940
Support level to watch out for: $1.0840
Disclaimer: Opinions expressed are not investment advice. Do your research.
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