DAILY TECHNICAL ANALYSIS FOR MAY 16, 2022petar skakalov
Current level – 1.0412
The sell-off slowed down and the decline was limited to the support zone at around 1.0360. The market seems to be oversold and the downward momentum looks to be coming to an end. The EUR/USD is therefore expected to enter a deeper and more complex correction. A new test of the area at around 1.0360 is possible, from where prices are expected to rebound towards the resistance at 1.0480. If a deeper correction develops, then the zone should be extended and the bulls would possibly be limited by the resistance at 1.0580. Around this resistance, a resumption of the downtrend, with a potential target of 1.0300, can also be expected.
Current level – 129.47
On Friday, the U.S. dollar scored some moderate gains against the yen, which continued during the early hours of today. At the time of writing, the pair is headed towards a test of the resistance at 130.45 and, in case of a confirmed breach, we may expect an upward movement towards the next resistance level at 131.25. However, if the mentioned level resists the bullish pressure, then a corrective movement towards the support at 127.64 is a possible scenario.
Current level – 1.2273
The sterling started to rise at the beginning of the session, reaching the resistance zone at 1.2275 and the expectations are for this level to be violated and for the pair to head towards the next critical resistance at 1.2400. In the opposite direction, only a confirmed breach of the support at 1.2170 would be an opportunity for the bears to attack the psychological level of 1.2100 and confirm the negative market sentiment for the continuation of the downtrend.
Gold price keeps declining
Gold price continues to decline, and attempted to surpass 1800.00 barrier, reinforcing the expectations of continuing the bearish trend, organized inside the bearish channel that appears on the chart, supported by the EMA50 that continues to press negatively on the price, reminding you that our next target is located at 1780.25.
Holding below 1850.00 is important to continue the suggested bearish wave, as breaching it will lead the price to turn to rise and start correctional bullish wave on the intraday basis.
The expected trading range for today is between 1785.00 support and 1825.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis