EUR./USD analysis for May 02, 2019

EUR/USD has been trading downwards. The price did drop after FOMC report yesterday and tested the level of 1.1187 with a high volume. Since the strong reaction from sellers of resistance at 1.1260, we are expecting further downward continuation.

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Yellow rectangle – Swing high (resistance)

Larger white channel – Upward trend (broken

Smaller white lines - bearish flag

Yesterday was the key price action clue for us. The resistance at the price of 1.1260 held successfully and price action confirmed big aggression from sellers and that is why we still expect further downside movement. The upward channel got broken and the bearish flag after the breakout confirmed that breakout Support levels are seen at the price of 1.1152 and 1.1113. The short-term high is set at the price of $1.1218. Watch for selling opportunities.

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