Technical Analysis for EURUSD for 5th May 2023
Euro Contracts, USD Bulls Find Reprieve after 2 Month Losing Streak
Past Performance of EURUSD
Euro prices are lower as USD bulls rejected attempts for higher highs. The immediate resistance lies at 1.1100, as a double top will likely print in the upcoming sessions. A notable development when prices rejected higher prices on May 4 was the rise in trading volumes. This may suggest that USD bulls are keen to participate, a move that could press the Euro further in the days ahead.
EURUSD Technical Analysis
The rejection of higher highs on May 4 prints out at a critical resistance level. The 1.1100 resistance line flashes with April resistance. It is also within the same range as February peaks. While bearish, how prices move in the next few days depends on if USD bulls press on. Any breakout below the current range at 1.0960 may trigger a sell-off towards 1.0850 and 1.0750. These are critical Fibonacci retracement levels of the March to April 2023 trade range.
What to Expect from EURUSD
USD bulls are confident, and the EUR bull run could be over. This depends on whether prices drop below the immediate support level today or in sessions ahead. Any upswing above 1.1100 will invalidate the bearish preview, allowing euro bulls to continue with the upswing from early March.
Resistance level to watch out for: 1.1100
Support level to watch out for: 1.0960
Disclaimer: Opinions expressed are not investment advice. Do your research.
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