EURUSD – Preparing for further declines

22.05.2023

Daily: there is a build-up of bearish ADX potential. At any moment it is possible that the euro will resume falling towards 1.07 and below.

H4: The pair reached the potential sell-off area at 1.0923 (middle Bollinger band), where it had a 12-hour consolidation at the end of last week. The ADX is correcting so far, so the trend of potential accumulation may continue.

H1: We cannot exclude one more attempt of a local ascending wave, because the hour chart earlier saw a breakdown of the upper Bollinger envelope.

Conclusions: Pro-trading in the range of 1.0793-1.0840.

Recommendations: Sell from 1.0840 to 1.0793.