FX.co ★ Forecast for EUR/USD on May 26, 2021

EUR/USD

The euro rose by 34 points on Tuesday, breaking the May 19 high and the upper border of the global descending channel. It has now been abolished, but the price did it in such a careful manner that the downward potential of the euro not only did not decrease, but even increased.

The price has formed a steep rising wedge on the daily chart, which often acts as a reversal chart pattern, the double divergence with the Marlin oscillator has increased to almost triple. Now we are waiting for the price to leave the wedge-shaped structure to the downside, move under the target level of 1.2170 and decline to the MACD line in the area of the 1.2060 mark.

A price divergence with an oscillator has formed on the four-hour chart. The first confirming signal of a euro reversal into a downward trend will be the price crossing under the MACD indicator line, below 1.2196.