empty
 
 
23.05.2022 08:26 AM
Red-hot forecast of EUR/USD on May 23, 2022

By and large, the single European currency is trading flat according to the daily chart. In the first half of the trading day on Friday, it was losing ground. EUR/USD rebounded at the opening levels in the early American session. Interestingly, the currency pair made notable price swings. First, the price dropped 50 pips and then bounced 50 pips. Nevertheless, EUR/USD is still trapped insidethe trading range. The economic calendar is empty today like it was on Friday. In the best-case scenario, we will see the same scenario as on Friday. As a result, EUR/USD will close today at the opening levels.

EUR/USD slowed down a correctional move in the area of the previously broken range between 1.0500 and 1.0600. Traders cut on long positions a bit as the overall trend is still bearish.

The 4H RSI technical instrument is moving in the upper area of 50/70, thus signalling buying interest among traders. The D1 RSI remains below the average line of 50. In case the indicatorpasses the line of 50 upwards, it will signal an extended correction.

The moving averages of the H4 Alligator are directed upwards which indicates a correctional move. The D1 Alligator signals a slowdown in the downward cycle. So, moving averages may intersect each other.

Outlook and trading tips

Under such market conditions, EUR/USD may extend the correction as soon as the pricesettles above 1.0636 at least on the 4-hour chart. Until then, there is a risk of a drop towards 1.0500.

Complex indicator analysis generates a buy signal for the short-term and intraday trading on the back of the correction. At the same time, indicators suggest selling in the medium term amid the overall downtrend.

This image is no longer relevant

Dean Leo,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback