Technical Analysis for EURUSD for 1st June 2023
Euro Sell-off Continues, Was the Recent Drop to $1.0630 Climactic?
Past Performance of EURUSD
EUR price crashed on May 31, dropping to as low as $1.0626. However, the long lower wick at the end of the session could provide a glimmer of hope for bulls. Presently, the downtrend remains, and USD bulls are emphatic. As it is, the euro is down 3.6% from May 2023 highs.
EURUSD Technical Analysis
EUR prices remain in range at spot rates but within a bearish formation. Every attempt higher below $1.0740 may provide an opportunity for sellers to double down in lower time frames. The immediate target for day traders will be $1.0630, or May 31 lows. Conversely, if yesterday’s bearish bar was climactic, marking the end of the recent bear run, there must be a comprehensive close above $1.0740 with expanding volumes. In that case, the EUR may bounce to $1.0850 in a welcomed recovery.
What to Expect from EURUSD
Bears are dominant, and bulls are struggling to tame the drain. The drop of May 31 was with expanding volumes, and the range was relatively high. With prices inside the candlestick, there could be more sell-off waiting. However, considering yesterday’s gains in the NY session, there might be some breathing space for optimistic euro bulls.
Resistance level to watch: $1.0740
Support level to watch: $1.0630
Disclaimer: Opinions expressed are not investment advice. Do your research.
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