Mon, May 16, 2022 @ 19:08 GMT
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Trade Idea Update: EUR/USD – Stand aside

EUR/USD – 1.0592

New strategy  :

Stand aside

Position : –

Target :  –

Stop : –

The single currency rallied after holding above previous support at 1.0493, dampening our bearishness and consolidation with mild upside bias is seen for marginal gain, however, as broad outlook remains consolidative, reckon upside would be limited to 1.0660-65 (50% Fibonacci retracement of 1.0829-1.0493) and resistance at 1.0680 should hold, price should falter well below 1.0700-05 (61.8% Fibonacci retracement), bring retreat later.

In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 1.0570-75 would prolong consolidation and risk weakness to 1.0540-45, however, support at 1.0493 should remain intact. Only a drop below this support would revive bearishness and signal;l recent decline from 1.0829 has resumed for further selloff to 1.0470 and then towards previous support at 1.0454.

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