EURUSD Analysis, May 16, 2025
If we look closely, there is a candlestick formation that represents a tug-of-war between buyers and sellers in the area around the moving average and the minor resistance area. Several candle rejections can be seen near the 1.1200 area, indicating that this level is still a psychological barrier that must be penetrated to trigger further bullish momentum. However, on the downside, the price also bounced off around 1.1180 several times. This shows that this support is strong enough to keep the price within the range, and buyers will likely maintain it until it is proven to be broken with large volume pressure.
If the price is able to penetrate the 1.1205 resistance with a bullish confirmation candle, then there is a high possibility that the price will continue to rise to the next targets at 1.1230 and 1.1250. But if the price fails to penetrate the 1.1205 resistance and forms a reversal pattern such as a bearish engulfing or pin bar, then a decline back to the 1.1180 support will occur.