FX.co ★ Technical Analysis of EUR/USD for May 5, 2022

Technical Market Outlook

The EUR/USD pair had bounced towards the technical resistance seen at the level of 1.0636 after the FED interest rate hike yesterday. This is the bounce the market participants has been waiting for, so the retracement might be quite big, however the oversold market conditions on the Daily time frame chart, indicate the down trend continues and there is no indication of trend termination or reversal just yet. The nearest technical support is located at 1.0573 and the next target for bulls is seen at 1.0654. The bearish market border is located at 1.0755, so there is still a room for bears to try to resume the down trend.

Weekly Pivot Points:

WR3 - 1.1064

WR2 - 1.0933

WR1 - 1.0710

Weekly Pivot - 1.0591

WS1 - 1.0363

WS2 - 1.0252

WS3 - 1.0032

Trading Outlook:

The market is still in control by bears that pushed the price way below the level of 1.1185, 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 1.1494 (high from 06.02.2022) only if bullish cycle scenario is confirmed by breakout above the level of 1.1186 and 1.1245, otherwise the bears will push the price lower towards the next long-term target at the level of 1.0336 or below.