Technical analysis of EUR/USD for May 23, 2018

The EUR/USD pair continues to move downwards from the areas of 1.1880 and 1.1797. This week, the pair dropped from the level of 1.1880 to 1.1715. Today, resistance is seen at the levels of 1.1797 and 1.1880. So, we expect the price to set below the strong resistance at the levels of 1.1797 and 1.1880; because the price is in a bearish channel now. Amid the previous events, the price is still moving between the levels of 1.1797 and 1.1629. In overall, we still prefer the bearish scenario as long as the price is below the level of 1.1797. Furthermore, if the EUR/USD pair is able to break out the bottom at 1.1715, the market will decline further to 1.1629 (daily support 2). Hence, the price will fall into a bearish trend in order to go further towards the strong support at 1.1540. On the other hand, if the price closes above the strong resistance of 1.1880, the best location for a stop loss order is seen above 1.1900.

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