For Traders

Analytical Reviews

Trading plan

20.05.202213:54 Forex Analysis & Reviews: Trading plan for EURUSD on May 20, 2022

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Technical outlook:

EURUSD raised through the 1.0610 highs during the late New York session on Thursday before pulling back. The single currency pair is drifting a bit sideways within a lower degree triangle before breaking higher towards the 1.0640-50 area. Bulls are still looking poised to remain in control and break above initial resistance around 1.0650 in the near term.

EURUSD is set to carve a meaningful upswing between 1.0348 and 1.0650 going forward. Once complete, bears would want to produce a pullback through the 1.0450-60 mark at least before the next leg resumes higher. The currency is seen to be trading close to 1.0580 at this point in writing and is expected to print 1.0640-50 soon.

EURUSD is close to confirming a potential trend reversal, which was called after the 1.0348 low was accompanied by a strong bullish divergence on the daily RSI. Upside target potential remains through 1.0920-30 and up to 1.1200 respectively. Traders might be preparing to hold long positions taken since the 1.0350 mark.

Trading plan:

Potential rally towards 1.0920 and 1.1200 against 1.0300

Good luck!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.