EUR/USD Technical Analysis dated 25.05.2023

EUR/USD Technical Analysis dated 25.05.2023

As mentioned in the previous analysis of the EUR/USD dated 10.05.2023, according to the mentioned technical signs, the price had the potential to descent and finally the descent movement happened for this currency pair. During the last week and this week, sellers have reached the lowest price level (i.e. 1.071401) so far in this cycle.

According to the type of price movements in long-term intervals (e.g. monthly and weekly), there is no clear reason for the price increase and the reliable sign for the continuation of the ascending trend comes with the formation of a fixed price floor in the weekly time frame and the threat of the resistance level of 1.1 (Warning for buyers with medium-term transactions).

In the current situation, some cautious sellers are gradually exiting their trades when the price reaches the support level (i.e. 1.07-1.072). The breaking of this support level and the stabilization of the price below it will strengthen the potential of the downward trend and the sellers will try to reach the important support level (i.e. 1.055). In shorter periods of time (e.g. 4 hours), the price is saturation and there will be a weak correction potential during the upcoming candles. If a price floor is formed and it stabilizes in the range of the support level (i.e. 1.07-1.07284), the price will go through the ascending potential and reach to the resistance levels (1.0760) and then increase to 1.08.

CloseOption Team

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