Euro retests resistance 17/5/2022

Quiet movements that tended to the upside dominated the euro against the US dollar, with the opening of the first trading sessions of this week to retest the 1.0460 resistance level.

Technically, despite the bullish bias, we tend to the negativity, relying on trading stability below 1.0460, the strong supply point represented by the 50.0% Fibonacci correction as shown on the chart, and the stochastic reaching the overbought areas.

Therefore, the bearish scenario will remain the most likely, knowing that the stability return below 1.0400 facilitates the task required to visit 1.0320 official stations. Breaking it will extend the losses of the bearish directional movement way is directly open to visit 1.0290.

The consolidation and stability of the price above 1.0460 with the closing of an hourly candle above it delay the chances of a decline but does not cancel it. We may witness a bullish bias that aims to retest the 1.0490 61.80% correction before attempting to decline.

Note: Today we are awaiting the speech of the Federal Reserve Chairman and the European Central Chairman later in today’s session, and we may witness high volatility in prices.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1.0360	R1: 1.0460
S2: 1.0320	R2: 1.0500
S3: 1.0290	R3: 1.0580