Detailed FX Market Outlook and Analysis

EUR/USD Daily Analysis 23-MAY-2022

EUR/USD Daily Analysis

Intraday bias in EUR/USD stays neutral at this point. Considering bullish convergence condition in 4-hour MACD, the break of 1.0641 resistance will confirm short-term bottoming at 1.0348, ahead of 1.0339 long-term support. Intraday bias will be turned back to the upside for 55 days EMA (now at 1.0766). On the downside, however, a decisive break of 1.0339 will carry a more significant bearish implication and target a 161.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0069.

In the bigger picture, the focus stays on 1.0339 long-term support (2017 low). A decisive break there will resume the whole downtrend from 1.6039 (2008 high). The next target is a 61.8% projection of 1.3993 to 1.0339 from 1.2348 at 1.0090. However, a firm break of 1.0805 support turned resistance will delay this bearish case and bring a medium-term corrective rebound.

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