Technical Analysis of EUR/USD for May 25, 2021

Technical Market Outlook:

The EUR/USD pair keeps consolidating the recent gains. The market trades inside of a narrow range located between the levels of 1.2160 - 1.2242, so the bulls are still changeling the swing high located at 1.2245. The next target for bulls after the breakout higher is done is located at 1.2284. The market conditions are overbought and the momentum is positive, so if there is no sustained and coordinated breakout above the level of 1.2242, the bears might strike back and push the prices towards the main channel lower line seen around the level of 1.2120.

Weekly Pivot Points:

WR3 - 1.2356

WR2 - 1.2298

WR1 - 1.2235

Weekly Pivot - 1.2173

WS1 - 1.2117

WS2 - 1.2059

WS3 - 1.1997

Trading Recommendations:

The daily time frame chart show the breakout above the trend line resistance and a new swing high above the recent Doji candlestick high. The momentum is strong and positive, so the up trend can be continued towards the next long-term target located at the level of 1.2241 (25.02.2021) and 1.2350 (06/01/2021).