Weekly Technical – EUR/USD – May 30th 2022
The single European currency managed to recover some losses versus the US dollar. The EUR/USD exchange rate printed two-weeks gains of 417 pips (four digit quotes) or 2.17%, after the pair bottomed out at 1.03492 dollars per Euro. Such a significant rebound could lead to a deeper bullish retracement in case if several important technical conditions were achieved.
First of all, the weekly chart setup below shows that the past week’s close rate is still below the Ichimoku Conversion line, which acts as the initial resistance curve. THe downtrend is still in play as the leading span remains bearish, and resistance curves are not’ breached by the weekly close price. A test of the Ichimoku Base line at 1.09221 is possible for the week ahead, however, it’s hard to expect more significant achievements for the pair.
The Relative Strength Index went off the oversold zone, heading towards the 50% threshold that divides the bearish and bullish sentiment. There has been a crossover of blue and yellow lines, which signals a short-term recovery of the rate. The Awesome Oscillator remained in the bearish zone but the recent bar changed color to green, which points to a retracement phase.
Another weekly chart setup below shows that EUR/USD is currently testing an initial resistance range marked by the Williams Alligator’s green line. However, the indicator remains in the bearish eating phase. Horizontal static lines outline potential resistance and support level.
The MACD indicator is about to perform a bullish crossover as the red and blue lines are about to cross each other in the negative zone. MACD histogram is reaching the zero level to change the momentum. Williams Percent Range has almost reached the 50% resistance level, and a breakout of it could lead to further gains of the pair. Best wishes traders!!