Technical Analysis of EUR/USD for May 18, 2021

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Overview :
  • The EUR/USD pair set above strong support at the level of 1.2182, which coincides with the 78% Fibonacci retracement level. This support has been rejected for four times confirming uptrend veracity.
  • Hence, major support is seen at the level of 1.2182 because the trend is still showing strength above it.
  • Accordingly, the pair is still in the uptrend from the area of 1.2182 and 1.2131. The EUR/USD pair is trading in a bullish trend from the last support line of 1.2182 towards the first resistance level at 1.2263 in order to test it.
  • This is confirmed by the RSI indicator signaling that we are still in the bullish trending market. Now, the pair is likely to begin an ascending movement to the point of 0.6582 and further to the level of 0.6747.
  • Amid the previous events, the price is still moving between the levels of 1.2132 and 1.2299. The weekly resistance and support are seen at the levels of 1.2299 and 1.2132 respectively.
  • In consequence, it is recommended to be cautious while placing orders in this area. Thus, we should wait until the sideways channel has completed.
  • The level of 1.2299 will act as second resistance and the double top is already set at the point of 1.2186.
  • At the same time, if a breakout happens at the support levels of 1.2132 and 1.2082, then this scenario may be invalidated. But in overall, we still prefer the bullish scenario.
The material has been provided by InstaForex Company - www.instaforex.com

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