19.05.202220:35 Forex Analysis & Reviews: Technical analysis of EUR/USD for May 19, 2022

Overview :

Pivot : 1.0642.

The direction of the EUR/USD pair into the close this week is likely to be determined by trader reaction to 1.0349 and 1.0642. The EUR/USD pair climbed above the level of 1.0490 before it started a downside correction.

It broke a fateful bullish trend line with support near 1.0490 on the H4 chart. Right now, the EUR/USD pair settled below the key 1.0642 resistance.

So, it is at a risk of a downside break below 1.0642. According to previous events, the EUR/USD pair has still moving between the level of 1.0642 and the 1.0349 level (those levels coincided with the Fibonacci retracement levels 38.2% and double bottom respectively).

Look for the intraday a strong downside bias to continue as long as the EUR/USD pair holds below the price of 1.0642 which represents the daily pivot.

If this move creates enough late session downside momentum then look for a wave into 1.0600, followed closely by 1.0565. The EUR/USD pair settled below the 1.0642 resistance zone, opening the doors for more downsides in the near term.

Similarly, The EUR/USD pair could dive if it breaks the 1.0565 support. Today, the first resistance level is seen at 1.0642 followed by 1.0712, while daily support 1 is seen at 1.0490.

Furthermore, the moving average (100) starts signaling a downward trend. Therefore, the market is indicating a bearish opportunity below 1.0642 or 1.0600.

For that, it will be good to sell at 1.0642 with the first target of 1.0490. It will also call for a downtrend in order to continue towards 1.0349 in coming hours.