EUR/USD recap for 21.05.2018
The downfall of the Euro has halted for a moment after the price touched 1.17157 and made a bullish inverse hammer signaling a turnaround for the price as currently it is testing 1.18225. As the test is undergoing it will important to see if the price will manage to breach 1.18000 for a move up or we'll see it failing and continue to fall. There wasn't much :) (the smile was typed it from my girlfriend as I was distracted for a moment) events in the calendar Yesterday, so the price was in corrective mode. Italian political crisis is still undergoing as it keeps pressuring the pair down, but Yesterday the Bulls trapped the Bears in their own game with strong and volatile pullbacks as shorts were covered and there was a fake breach at 1.17658. Euro is still under the 200EMA and the price is still in Bear control.
Still we are far away from seeing major reversals in the trend as for now any moves up are a signal only for short - term corrections. Political outcomes and the is moving forward with more events will shed more light for the price in the long - term as well. ECB will toss the coin as well in regards to their hikes plan for the future.
One thing for sure, cheap Euro is good for exports as it will for sure benefit the Trade Balances for some members of the EU.
Sell the top I would say with tight TP's and trailing stops will be a good defense for any unforeseen volatility.