Technical Analysis for EURUSD for 25th May 2023
Euro Flash Crashes, More Drawdown Expected
Past Performance of EURUSD
The euro is under intense selling pressure. With the sell-off clear, the path of least resistance is southwards as the currency trades at the lowest level in H2 2023 versus the greenback. As it is, the euro is below last week’s low in a bearish breakout formation. At this pace, bears expect March lows to be retested earlier.
EURUSD Technical Analysis
After a pause, EUR crashed on May 24, forcing prices below $1.0760 in a bear breakout formation. Yesterday’s bar was wide-ranging and had decent volumes, supporting sellers. Going forward, traders may look for shorting entries on every attempt higher, below $1.0760. Notice that the selling momentum is high as bars ride the lower BB, and the medium target of $1.0500 seems viable.
What to Expect from EURUSD
Provided EURUSD is below the recent resistance of $1.0850 registered early this week, sellers are in control. The dump is already with expanding volumes, and the associated bar is wide-ranging, pointing to high participation.
Resistance level to watch out for: $1.0760
Support level to watch out for: $1.0500
Disclaimer: Opinions expressed are not investment advice. Do your research.
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