FX.co ★ EUR/USD analysis for May 07 2021 - Buying climax and potential for the downside mvoement towards 1.2060

Technical analysis:

EUR has been trading upside after the NFP today but we got major buying climax. Buying climax in the rising market is negative and there is potential for the downside movement.

Trading recommendation:

Watch for potential selling opportunities with the downside target at 1.2060

Additionally, there is strong volume on the down bar after the upside bar, which is sign that sellers are very active and that we might see reversion to the mean.Resistance set at 1.2130