FX.co ★ EUR/USD analysis for May 20, 2022 - Rejection of the key pivot at 1.0600, potential for drop and downside continuation

Technical analysis:

EUR/USD has been trading upwards yesterday but the price has reached the key pivot level at 1.0600 and I see potential for the downside movement.

Trading recommendation:

Due to the strong downside cycle on the daily time-frame in the background and potential for ABC upside correction completion, I see further downside movement.

Watch for potential selling opportunities on the intraday rallies with the downside objectives at 1.0515 and 1.0470.

MACD oscillator is showing divergence and potential for the downside rotation.