FX.co ★ Trading plan for EUR/USD for May 18, 2022

Technical outlook:

EUR/USD raised through 1.0565 in the early Asian session on Wednesday before pulling back. The pair seems to be targeting the 1.0580-1.0640 levels in the near term. We can expect a corrective drop thereafter, which could drag prices towards 1.0400-20. Bulls will be poised to come back in control after that.

EUR/USD produced a bullish Morning Star candlestick pattern since printing the low of 1.0348 earlier. The above indicates a potential trend reversal ahead. Immediate price resistance is seen through 1.0640-50, followed by 1.0920 and higher; while interim support comes around 1.0300 respectively. A push through 1.0640 would encourage bulls further.

EUR/USD has responded well to the bullish divergence seen on daily RSI, which we have been presenting since the 1.0348 low. Bulls are now in control as they target 1.0640 and higher in the near term. Watch out for a corrective decline thereafter, before the next rally could resume towards 1.0920-30 and higher.

Trading plan:

Potential rally towards 1.0640, 1.0920-30 against 1.0300

Good luck!