Forex Analysis:::2021-05-21T14:15:14
Technical Analysis of EUR/USD for May 21, 2021
Overview :
- The EUR/USD pair broke resistance which turned to strong support at the level of 1.2125 last week.
- The level of 1.2125 is expected to act as major support today. From this point, we expect the EUR/USD pair to continue moving in a bullish trend from the support levels of 1.2125 and 1.2150.
- Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.
- Consequently, the first support is set at the level of 1.2125 (horizontal red line). So, the market is likely to show signs of a bullish trend around the spot of 1.2125.
- In other words, buy orders are recommended above the spot of 1.2125 with the first target at the level of 1.2245; and continue towards 1.2289 (the weekly resistance 2).
- This would suggest a bearish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.
- On the other hand, if the EUR/USD pair fails to break through the resistance level of 1.2328 this week, the market will decline further to 1.2200.
- The pair is expected to drop lower towards at least 1.2200 with a view to test the weekly pivot point. Also, it should be noted that the weekly pivot point will act as minor support today.
Mourad El Keddani
Analyst InstaForex
