Technical Analysis for EURUSD for 22nd May 2023
Euro Meltdown Reducing, is There Hope for Bulls?
Past Performance of EURUSD
Euro prices are low when writing, but following last week’s close, there is hope for bulls. Specifically, the rejection of lower lows means prices are now within the bear bar of May 18. The immediate reaction levels to watch are $1.0850 and $1.0760, marking the recent climactic bar’s trade range.
EURUSD Technical Analysis
The path of least resistance is southwards. All the same, the rejection of lower prices on May 19 could spur demand. In lower time frames, the euro edged higher in the NY session with expanding volumes. At this pace, this could spill to today, propping the euro and reinvigorating bulls targeting $1.0850. If today’s close is above May 18’s high, the euro may recover towards $1.0950 in the days ahead in a possible correction. Conversely, any drop below last week’s low opens up the euro for a potential fall to $1.0500 in a bear trend continuation pattern.
What to Expect from EURUSD
Prices are consolidating, slowing down after sharp losses in the first half of last week. For now, traders should watch how prices react to key levels of the March 18 bear candlestick. This would likely shape the immediate to medium-term trend.
Resistance level to watch out for: $1.0850
Support level to watch out for: $1.0760
Disclaimer: Opinions expressed are not investment advice. Do your research.
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