EUR/USD Technical Outlook – May 31st
- The selling continues on the last day of May for the single currency as the EURUSD spot rate has fallen through the key psychological 1.2500 figure. The downside penetration of the 1.2500 remains widely indicative of further downside, with initial support levels being noted at the 1.2165 June 30th session low.
- However, given the steep decline in the major spot rate, a short term retracement cannot be ruled out in the near term. Any correction higher is likely to be met with formidable resistance circa the 1.2500 round figure barrier and above at the 1.2627 resistance level.
- Further long term bearish indications are remaining intact, with the price action now entering its impulse wave number 5. The notion would purport an extension of the current wave to the aforementioned 1.2165 barrier and the 1.1879 June 7th low as secondary levels of support.
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