FX.co ★ Technical Analysis of EUR/USD for May 19, 2023

Technical Market Outlook:

The EUR/USD keeps moving lower after the price had broke out from the Falling Wedge pattern on the H4 time frame chart and hit the lows at the level of 1.0761. Another local bounce from the lows was shallow and bulls were rejected from the intraday technical resistance located at 1.0846 and then from 1.0811.The momentum is weak and negative again on the H4 time frame chart, so the bears have the control of the market, but now the market conditions are extremely oversold. The next target for bears is seen at the level of 1.0716 and the down move should resume as soon as the pull-back is done.

Weekly Pivot Points:

WR3 - 1.09105

WR2 - 1.08862

WR1 - 1.08762

Weekly Pivot - 1.08619

WS1 - 1.08519

WS2 - 1.08376

WS3 - 1.08133

Trading Outlook:

Since the beginning of October 2022 the EUR/USD is in the corrective cycle to the upside, but the main, long-term trend remains bearish. This corrective cycle might had been terminated at the level of 1.2080 which is 61% Fibonacci retracement level. The EUR had made a new multi-decade low at the level of 0.9538, so as long as the USD is being bought all across the board, the down trend will continue towards the new lows.