Technical Analysis for EURUSD for 4th May 2023

Technical Analysis for EURUSD for 4th May 2023

Euro Retesting Key Resistance Line, Double Top Forming?

Past Performance of EURUSD

Euro bulls have the upper hand, printing higher highs in the daily chart. Gains of May 3 were conspicuous but failed to break out above 1.1100. Still, the bulls have the upper hand despite the clear double-top forming.

EURUSD Technical Analysis

The Fed raised rates but didn’t push the Euro above the immediate resistance level. The May 3 bar closed with a long upper wick suggesting sell-off in the tail end. Moreover, trading volumes are lighter, hinting at weakness after a strong performance in the last five months. As prices consolidate and momentum drops, traders should watch out for how prices react at 1.1100 on the upper hand and 1.0965 on the lower end. For bears to take charge, a high volume bar must break below 1.0965, confirming the bearish engulfing bars of April 14 and 25. Conversely, a break above April highs may see the Euro extend gains, powering towards 1.12.

What to Expect from EURUSD

Euro bulls are in control following a 5% gain since January. There is a possible double-top forming, and momentum is waning, questioning the strength of the upsides. In the days ahead, a comprehensive, wide-ranging breakout above immediate resistance will rejuvenate demand, further pumping the euro.

 

Resistance level to watch out for: $1.1100

Support level to watch out for: $1.0965

 

Disclaimer: Opinions expressed are not investment advice. Do your research.

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