FX.co ★ Technical analysis on EURUSD for May 16, 2022.

EURUSD starts the week slightly positive just above 1.0410. Trend remains bearish in the higher time frames as price continues to trade inside major downward sloping channels making lower lows and lower highs. In the short-term a bounce is justified but as long as price is below 1.09, we consider each bounce as a selling opportunity.

Red lines- Fibonacci extension

EURUSD has reached the 100% extension target of the first leg down. Price is trading at price levels not seen after 2017. Trend is clearly bearish with no sign of a reversal. Short-term resistance is found at 1.0645. A move towards that level is very probable over this week. As long as price is below 1.0650 EURUSD will remain vulnerable to more downside.