Technical Analysis of EUR/USD for May 18, 2021

Technical Market Outlook:

The EUR/USD pair has broken through the short-term supply zone located between the levels of 1.2154 - 1.2178 and made a new local high at the level of 1.2190 (at the time of writing the article). The violation of this zone will likely lead to another wave up with a target at the level of 1.2200 and 1.2242. Except the fact that the level of 1.2178 will now act as a technical support, the other intraday technical support is seen at the level of 1.2116 and 1.2107. Please notice, the market conditions are neutral and the momentum is strong and positive, which supports the short-term bullish outlook for this pair.

Weekly Pivot Points:

WR3 - 1.2332

WR2 - 1.2258

WR1 - 1.2204

Weekly Pivot - 1.2125

WS1 - 1.2076

WS2 - 1.1998

WS3 - 1.1940

Trading Recommendations:

The daily time frame chart show the breakout above the trend line resistance and a new swing high above the recent Doji candlestick high. The momentum is strong and positive, so the up trend can be continued towards the next long-term target located at the level of 1.2241 (25.02.2021) and 1.2350 (06/01/2021).

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

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