Technical analysis on EUR/USD for May 23, 2018

The EUR/USD pair is making fresh new lows, but the RSI continues to diverge. I do not believe we should chase short position, on the contrary, I remain bullish on this pair even more with this new bullish divergence.

analytics5b0521e648acb.png

Red lines - bullish divergence

EUR/USD is still technically in a bearish trend. Price continues to make lower lows and lower highs. As long as the price is below, the 1.1830 trend will remain bearish. I remain a contrarian to this trend as I believe we should see a reversal this week. Support is now at 1.1690 and resistance is at 1.1770. Bulls need to see at least a move above 1.1770 in order to cancel this new downward move. Bears remain in control of this trend, but I do not expect this to last much longer.

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