FX.co ★ EUR/USD analysis for May 18, 2022 - Rejection of the key pivot at 1.0575 and potential for further drop

Technical analysis:

EUR/USD has been trading downside today after the exhaustion in the background. I see potential for further drop and continuation of the bigger downside trend.

Trading recommendation:

Due to the strong downside cycle and rejection of the key resistance in the background, I see potential for further downside continuation.

Watch for potential selling opportunities on the intraday rallies with the downside objectives at 1.0440 and 1.0360.

Stochastic oscillator is showing fresh bear cross from the extreme condition, which is good sign for further downside movement.

Key resistance is set at the price of 1.0600