Technical Analysis for EURUSD for 23rd May 2023
Euro Remains Bearish Despite Gains, Resistance at $1.0850
Past Performance of EURUSD
Euro prices edged higher on May 22. However, bulls didn’t peel back the losses of May 18. As such, the downtrend remains, and the bearish bar of the second half of last week shapes the immediate trend. Resistance remains at around $1.0840 while support is at $1.0760, marking May 19 lows.
EURUSD Technical Analysis
Price action remains tepid, with no strong push above or below critical levels. Given the sharp drop of last week, sellers have the upper hand. Therefore, traders can look for shorting entries on every attempt toward $1.0840. However, if bulls push, and the expansion is bullish, engulfing with an uptick in volumes, euro could rise towards $1.0950 in the short term. Conversely, any drop below $1.0760 and last week’s lows may draw more sellers, confirming last week’s losses. In that case, the euro may drop toward $1.0500 in the days ahead.
What to Expect from EURUSD
After sharp losses last week, euro bulls started on a stronger footing in an expected correction. Even so, the correction won’t last, provided $1.0850 is the immediate resistance, limiting the upside. From a top-down preview, the immediate trend is southwards unless there is a clear shift in price action in the daily chart.
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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