The overall technical picture for EURUSD remains bullish, as the pair staged a rally from 1.0520 to 1.1615 (December to May). The technical indicators – RSI and MACD are in bullish territory, supporting the bullish market structure.

But after hitting the high at 1.1615, prices reversed lower to find support around the 1.1400 area. Clearer signals are needed to see if this fall is a correction of the recent uptrend or if it is a reversal of the upside move. For now prices are above the 21-day moving average and the key 1.14 level. A drop below this and below the 23.6% Fibonacci could increase downside momentum to see a further decline to the key 1.13 level. The 23.6% Fibonacci comes in at 1.1355 and is the retracement of the upleg from 1.0520 1.1615.

To the upside, resistance at 1.1500 would need to be cleared to pave the way for a retest of the May 3 high of 1.1615 and above this we will see a continuation of the uptrend.

EURUSDmay6


 

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