FX.co ★ Technical analysis of EUR/USD for May 05, 2023

Euro parity still in play ahead of decisive US inflation data, for that common currency came within whisker of 1.1018 this week. Right now, the EUR/USD pair is still moving around the price of 1.1018.

The currency pair EUR/USD is trading below the resistance levels of 1.1052 and 1.1092. The euro to US dollar (EUR/USD) rate has risen about 0.25% month-to-date to trade around 1.1018.

The raise is comparable to gain last seen for three weeks, when the European Central Bank unleashed its massive stimulus programme. The EUR/USD pair continues to move upwards from the level of 1.1018, which represents the double bottom in the hourly chart.

The pair rose from the level of 1.0970 to the top around 1.1018 USD. Today, the first resistance level is seen at 1.1052 followed by 1.1092 and 1.1115, while daily support is seen at the levels of 1.0943 and 1.015.

According to the previous events, the EUR/USD pair is still trading between the levels of 1.0943 and 1.1092. Hence, we expect a range of 149 pips in coming hours (1.1092 - 1.0943).

The first resistance stands at the price of 1.0927, therefore if the EUR/USD pair succeeds to break through the resistance level of 1.1092, the market will rise further to 1.1115.

This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to rise higher towards at least 1.1092 in order to test the second resistance (1.1115).

The US Dollar and the Euro are two of the most prominent and well-known currencies in the world. The Euro versus US Dollar (EUR/USD) currency pair has the largest global trading volume, meaning it is the world's most-traded currency pair. Whether you find the instrument easy or difficult to trade on, it's not a pair that many traders neglect, due to its daily volatility and price movement.

Thus, the market is indicating a bearish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.

Today, support is seen at the levels of 1.0943 and 1.0915. So, we expect the price to set above the strong support at the levels of 1.0943 and 1.0915; because the price is in a bullish channel now.

The RSI starts signaling upward trend. Consequently, the market is likely to show signs of a bullish trend. It will be good to buy above the level of 1.1018 with the first target at 1.1092 and further to 1.1115 in order to test the daily resistance.

If the EUR/USD pair is able to break out the daily resistance at 1.1055, the market will rise further to 1.1115 to approach support 3 in coming hours or two days. However, the price spot of 1.1115 and 1.1092 remains a significant resistance zone. Therefore, the trend is still bullish as long as the level of 1.0915 is not breached.