EUR/USD Bulls Need to Breach Above the 1.2185 Resistance Area

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 MAY 17, 2021

EUR/USD is trading almost unchanged at 1.2137 after making a high of 1.2150 earlier in the Asian session. The pair is moving towards the upper side of the ongoing trading range with 1.2185 acting as a strong resistance area. The intraday support levels are at 1.2138 and 1.2100.

The pair gained nearly 65 pips on Friday and ended the two days losing streak. On the intraday charts, the technical indicators are presenting a moderately bullish outlook. The SMA-14 is showing support at 1.2091 while the SMA-50 support line is at 1.19623. The RSI is at 59 while the MACD is above the zero line. The pair is also above the mid-Bollinger band. However, the 1.2185 is a stiff resistance area and the pair has declined from this level a couple of times. Therefore a buy trade is recommended only if the pair closes above the 1.2185. The target for this trade would be 1.2245 with an ideal stop-loss at 1.2155

Bulls require an intraday closing above 1.2185 to take the pair further higher. Failing to achieve that would help bears build a strong downwards pattern in the coming days.