Technical analysis of EUR/USD for May 07, 2018

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Overview:

The EUR/USD pair opened below the daily pivot point (1.1964). It continued to move downwards from the level of 1.1964 to the bottom around 1.1912. Today, the first resistance level is seen at 1.1964 followed by 1.2016, while daily support 1 is seen at 1.1912. Furthermore, the moving average (100) starts signaling a downward trend; therefore, the market is indicating a bearish opportunity below 1.1912. So it will be good to sell at 1.1912 with the first target of 1.1839. It will also call for a downtrend in order to continue towards 1.1782.

The strong daily support is seen at the 1.1782 level. According to the previous events, we expect the EUR/USD pair to trade between 1.1912 and 1.1782 in coming hours. The price area of 0.6632 remains a significant resistance zone. Thus, the trend is still bearish as long as the level of 1.1964 is not broken. On the contrary, in case a reversal takes place and the EUR/USD pair breaks through the resistance level of 1.1964, then a stop loss should be placed at 1.1990.

The material has been provided by InstaForex Company - www.instaforex.com