FX.co ★ Technical analysis for EUR/USD pair for the week of May 17-22, 2021

Trend analysis

The price from the level of 1.2140 (closing of the last weekly candle) may start rising this week, in order to test the level of 1.2196 – the pullback level of 76.4% (blue dotted line). After testing this level, growth may continue to the target of 1.2254 – the pullback level of 85.4% (blue dotted line). The next upward target is the upper fractal of 1.2349 (blue dashed line).

Figure 1 (weekly chart)

Comprehensive analysis:

• Indicator analysis - up
• Fibonacci levels - up
• Volumes - up
• Candlestick analysis - up
• Trend analysis - up
• Bollinger lines - up
• Monthly chart - up

An upward movement can be concluded based on comprehensive analysis.

The overall result of the candlestick calculation based on the weekly chart: the price will most likely move in an upward trend without a lower shadow (Monday - up) and with an upper shadow (Friday - down) in the weekly white candlestick.

The first upward target is set at 1.2196 – the pullback level of 76.4% (blue dotted line). Once this level is reached, the upward movement may continue to the target of 1.2254 – the pullback level of 85.4% (blue dotted line). The next upward target is the upper fractal of 1.2349 (blue dotted line).

Alternatively, the price from the level of 1.2140 (closing of the last weekly candle) may start declining in order to test the level of 1.2102 – the pullback level of 14.6% (yellow dotted line). After reaching this level, the upward movement may continue towards the target of 1.2196 – the pullback level of 76.4% (blue dotted line). Further growth can be expected once this level is tested.