FX.co ★ Technical analysis of EUR/USD for May 02, 2023

The EUR/USD pair broke resistance which turned to strong support at the level of 1.0981 yesterday. The level of 1.0981 is expected to act as major support today. From this point, we expect the EUR/USD pair to continue moving in a bullish trend from the support levels of 1.0954 and 1.0981. Currently, the price is moving in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in the bullish trending market.

Consequently, the first support is set at the level of 1.0981. So, the market is likely to show signs of a bullish trend around the spot of 1.0981 and 1.1003.

In other words, buy orders are recommended above the spot of 1.0981 or/and 1.1003 with the first target at the level of 1.1055; and continue towards 1.1096 (the weekly resistance 1).

Additionally, the RSI (The Relative Strength Index) is still calling for a strong bullish market as well as the current price is also above the moving average 100.

The RSI starts signaling an upward trend. Consequently, the market is likely to show signs of a bullish trend. The pair is expected to drop higher towards at least 1.1096 with a view to test the weekly double top. Also, it should be noted that the weekly pivot point will act as maor support today at the price of 1.0981.

This would suggest a bullish market because the moving average (100) is still in a positive area and does not show any trend-reversal signs at the moment.

On the other hand, if the EUR/USD pair fails to break through the resistance level of 1.1003 this week, the market will decline further to 1.0954. So, we expect the price to set below the strong resistance at the levels of 1.1003 and 1.0954; because the price is in a bearish channel now.

Signal :

Our strategy of analysis today: Trend - breakout down.

Downtrend : Reversal of trend after confirmation of breakout. EUR/USD pair : If the pair fails to pass through the level of 1.1055, the market will indicate a bearish opportunity below the strong resistance level of 1.1055. In this regard, sell deals are recommended lower than the 1.1055 level with the first target at 1.0954. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.0910. Third objective will be located at 1.0900.