USD Weak Again, EUR/USD Maintain Bullish Trend - Kakiforex | Forex markets for the smart money. USD Weak Again, EUR/USD Maintain Bullish Trend USD Weak Again, EUR/USD Maintain Bullish Trend

May 22, 2021

USD Weak Again, EUR/USD Maintain Bullish Trend

 The US dollar returned to a weak move heading into the weekend after the strengthening momentum displayed on Thursday failed to be sustained.


Investors' attention to talks for the Federal Reserve (Fed) to reduce bond purchases (tapering) began to fade again.


Meanwhile, investors were wary ahead of manufacturing and services sector economic data in Europe and the United States (US) today (Friday).




On the price chart of the EUR/USD pair, the price is seen declining to the RBS zone (resistance become support) 1.21800-1.21500 again rising again.


As analysts expected, the zone has supported a rebound for prices to continue moving in a bullish trend.


After passing the Moving Average 50 (MA50) barrier on the 1 -hour time frame of the price movement, the rise continued in the Asian session this morning heading back to the 1.22500 resistance zone tested last Wednesday.



Expectations of continued higher price increases will lead to the 1.23000 focus level to continue to hit the latest 4 -month highs.


However, if a bearish situation occurs, the price will re-test the RBS zone 1.21800-1.21500 and re-evaluate the price reaction in that zone.


A lower decline below that zone will push the price towards the previously focused RBS zone at 1.20900-1.20600.


Manufacturing and services PMI data in Europe and the US will be the focus of investors and will affect the movement of the Euro and US dollar before this week's trading ends.