EUR/USD Mid-Session Technical Analysis for May 21, 2018

The EUR/USD is rebounding shortly after the U.S. opening after hitting 1.17165, its lowest level since December 12. This puts the Forex pair in a position to form a potentially bullish closing price reversal bottom. This could fuel the start of a 2 to 3 day correction.

Daily Swing Chart Technical Analysis

The main trend is down according to the daily swing. A move over 1.1773 will put the EUR/USD in a position to form a closing price reversal bottom.

The new short-term range is 1.1997 to 1.17165. If the upside momentum shifts to the upside with the formation of the closing price reversal bottom, we could see a 2 to 3 rally into its retracement zone at 1.1857 to 1.1890.

Daily Swing Chart Technical Forecast

Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to Friday’s close at 1.1773.

A sustained move over 1.1773 will indicate the presence of buyers. This could trigger a move into the intraday high at 1.17815. A breakout above this level could lead to the formation of a closing price reversal bottom and a 2 to 3 day rally into 1.1857 to 1.1890.

A sustained move under 1.1773 will signal the presence of sellers. This could lead to a retest of today’s low at 1.17165 and the main bottom at 1.1712.

We could see a technical bounce on the first test of 1.1712, but if it fails, we could see an eventual move into the November 7 bottom at 1.1553.