FX.co ★ EUR/USD analysis for May 25, 2022 - Potential for bigger drop and breakout of upside channel

Technical analysis:

EUR/USD has been trading downside today as I expected and there is still potential for bigger drop on EUR and continuation od the downside trend in the background.

Trading recommendation:

Due to the strong downside cycle and rejection of the upper line of the channel, I see potential for the downside movement.

Watch for potential selling opportunities on the intraday rallies with the downside objectives at 1.0600 and 1.0360.

Stochastic oscillator is showing bear divergence and downside reading, which is good sign for further downside movement.

Key resistance is set at the price of 1.0750