Technical analysis

EURUSD Wave Analysis 21 May, 2021

• EURUSD reversed from multi-month resistance level 1.2240

• Likely to fall to support level 1.2060

EURUSD recently reversed down from the powerful, multi-month resistance level 1.2240 (which stopped the previous correction (b) in February).

The downward reversal from the resistance level 1.2240 created the daily candlesticks reversal pattern Bearish Engulfing.

Given the overbought daily Stochastic – EURUSD is likely to fall further toward the next support level 1.2060 (low of the previous minor correction (ii)).

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