Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 16-MAY-2022

EUR/USD Daily Analysis

Intraday bias in EUR/USD remains neutral for the moment. But outlook stays bearish as long as the 1.0641 resistance holds. A decisive break of 1.0339 will carry a more significant bearish implications and target 161.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0069. Nevertheless, the break of 1.0641 will indicate short-term bottoming and turn bias back to the upside for a rebound.

In the bigger picture, break of medium-term channel support suggests downside acceleration. Current decline from 1.2348 (2021 high) is probably resuming long term down trend from 1.6039 (2008 high). Decisive break of 1.0339 will confirm this bearish case. Next target is 61.8% projection of 1.3993 to 1.0339 from 1.2348 at 1.0090. This will now remain the favored case as long as 1.0805 support turned resistance holds.

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