Forecast for EUR/USD on May 19, 2023

EUR/USD
The euro did not develop a sideways movement, so as not to delay the breakthrough under the technical support level of 1.0804. Trading volumes were average, which means that the systematic buying of the dollar is underway, and the nearest big accumulation of orders is in the range of 0.0680-0.0730. Near this area is our target level of 1.0736. Consolidating below it will pave the way for 1.0636 - the underlying embedded line of the price channel, coinciding with the March 2020 low.

At the moment, a potential for a correction has emerged again, its goal is the level of 1.0804. There is one reason why the euro could fall without going through a correction - increased optimism regarding the resolution of the problem with the US public debt. There is a probability that the dispute in the US government on this issue will end this weekend.

A renewed convergence was formed on the four-hour chart. Since yesterday's low coincided with the point of intersection of price channel lines of two time scales (on 4H linear regression channel), the probability of a correction has increased. This probability may significantly go down once the price settles below yesterday's low.

Analysis are provided by InstaForex

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