FX.co ★ Technical Analysis of EUR/USD for May 18, 2022

Technical Market Outlook:

The EUR/USD pair has bounced above the key short-term technical resistance located at the level of 1.0469 and is currently trading back inside the descending channel. The bearish market border is located at 1.0635, so there is still a room for bears to try to resume the down trend. The oversold market conditions on the Daily time frame chart, indicate the down trend continuation and there is no indication of trend termination or reversal just yet. The nearest technical support is seen at the level of 1.0529 and 1.0469.

Weekly Pivot Points:

WR3 - 1.0771

WR2 - 1.0681

WR1 - 1.0526

Weekly Pivot - 1.0438

WS1 - 1.0274

WS2 - 1.0195

WS3 - 1.0032

Trading Outlook:

The market is still in control by bears that pushed the price way below the level of 1.0639, so a breakout above this level is a must for bulls for a long-term trend reversal. The up trend can be continued towards the next long-term target located at the level of 1.1186 only if bullish cycle scenario is confirmed by breakout above the level of 1.0726, otherwise the bears will push the price lower towards the next long-term target at the level of 1.0336 or below.