Forex Analysis:::2021-05-17T10:26:21
Technical Analysis of EUR/USD for May 17, 2021
Overview :
- The EUR/USD pair broke resistance which turned to strong support at the level of 1.2132 yesterday. The level of 1.2132 coincides with 61.8% of Fibonacci, which is expected to act as major support today.
- Since the trend is above the 61.8% Fibonacci level, it means the market is still in a uptrend. From this point, the EUR/USD pair is continuing in a bullish trend from the new support of 1.2132.
- This is shown to us as the current price is in a bullish channel. According to the previous events, we expect that the EUR/USD pair will move between 1.2132 and 1.2222.
- On the H1 chart, resistances are seen at the levels of 1.2182 and 1.2222. Also, it should ne noticed that, the level of 1.2132 is representing the daily pivot point.
- Therefore, strong support will be formed at the level of 1.2132 providing a clear signal for buy deals with the targets seen at 1.2182.
- If the trend breaks the support at 1.2182 (first resistance). Thereupon, it is possible that the pair will move upwards continuing the development of the bullish trend to the level 1.2222 in order to test the daily resistance 2.
- Therefore, the possibility that the EUR/USD pair will have a upside momentum is rather convincing and the structure of the climb does not look corrective.
- In order to indicate a bearish opportunity above 1.2222, it will be a good signal to re-buy 1.2222 with the third target of 1.2263.
- However, it is equally important that it will call for downtrend in order to continue bearish trend towards 1.2051. However, the stop loss should be located above the level of 1.2051.
Mourad El Keddani
Analyst InstaForex
