Technical Analysis for EURUSD for 19th May 2023
Euro Sell-Off Continues, Bears Step Up Targeting $1.0500
Past Performance of EURUSD
The euro is dumping hard. From the daily chart, sellers are stepping up their liquidation, forcing the coin. Although yesterday’s losses could be climatic, the bar is wide-ranging and defines the upcoming EURUSD price action. As it is, not only can traders target $1.0730 but also set sight on $1.5000 in the days ahead.
EURUSD Technical Analysis
Sellers are in the driving seat, and USD bulls are unrelenting. This formation is as expected as aligned in the weekly chart where sellers are confirming last week’s losses. Moreover, bear bars are riding the lower BB, which remains diverged from the 20-day moving average, indicating intense selling pressure and high volatility. At this pace, and if today ends up lower, USD bulls may look to sell even more as long as prices are below $1.0850—or May 18 highs. In this case, the immediate target will be March 2023 lows at $1.0500.
What to Expect from EURUSD
Unless otherwise there is an unexpected expansion reversing yesterday’s losses, the downtrend remains, and sellers can continue dumping on every attempt higher toward May 18 highs. The short-term target at $1.0730 could be tested earlier as swing traders expect more drawdowns in the upcoming session.
Resistance level to watch out for: $1.0850
Support level to watch out for: $1.0500
Disclaimer: Opinions expressed are not investment advice. Do your research.
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