Technical analysis of EUR/USD for May 18, 2018

EUR/USD remains in a bearish trend. Price made a low this week at 1.17629 and now is trading just above 1.18. EUR/USD is trading below cloud resistance in the 4-hour chart and has important bullish warning divergence signs. There is not trend reversal confirmation yet, but I believe a strong bounce is close by.

Red lines - bullish divergence

Short-term support is at 1.1780 while resistance is at 1.1840 but the most important resistance is at 1.1920. Bulls need to break above 1.1920 in order to hope for another run higher towards 1.20-1.21. Otherwise a rejection would lead to a lower low towards 1.17-1.1650.