21 May EURUSD outlook: Potential reversal seenEuro / U.S. DollarFOREXCOM:EURUSDChartingGenieEURUSD remained under pressure as rising energy prices and ongoing Middle East tensions strengthened demand for the US dollar while weighing on the Eurozone growth outlook. Persistent disruptions surrounding the Strait of Hormuz and stalled US-Iran negotiations kept oil prices elevated, reinforcing concerns that prolonged energy-driven inflation could further strain the euro area economy. However, expectations that the ECB may continue tightening monetary policy could help limit downside momentum in EURUSD, keeping the pair volatile amid shifting geopolitical risks and diverging economic outlooks. EURUSD formed broader lower swings and briefly tested the descending channel's upper bound and resistance at 1.16432 before hovering below it. RSI is also approaching the overbought region, suggesting potential for a reversal. If EURUSD remains below 1.16432, the price may extend its decline toward the support at 1.15828. Conversely, breaking above 1.16432 may fuel a move toward the next resistance at 1.16618. By Li Xing Gan, Financial Markets Strategist Consultant to Exness