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Daily Technical analysis for May 18, 2021

EUR/USD

Current level – 1.2156

An appreciation of the euro against the U.S. dollar towards 1.2270 can be expected if the resistance at 1.2172 is breached. However, at the time of writing this analysis, the volatility remains low. Due to this, it is possible for the currency pair to enter a consolidation phase in the range between 1.2065 and 1.2172 before the upward trend can continue. Only a breach of the critical support at 1.2065 would pave the way for the EUR/USD towards 1.1993. Today, investors’ attention will be focused on the data on the issued building permits in the U.S. (12:30 GMT).

USD/JPY

Current level –  109.19

The corrective phase is still in progress and it is expected for the pair to test the support at 108.94. If this support holds and the bulls enter the market, it is highly possible for the Ninja to attack the resistance at 109.68 on its way towards the level of 110.77.

GBP/USD

Current level – 1.4149

During the past trading session, the sterling rose against the U.S. dollar and the market sentiment remains positive – for the upward movement to continue towards the resistance at 1.4270. However, this scenario may be realised only if the pair manages to remain above the important resistance at 1.4146. The first support is the level of 1.4064

Gold price continues to rise

Gold price shows more bullish bias to attempt to breach the bullish channel’s resistance line now, which supports the expectations of continuing the main bullish trend, waiting to head towards 1900.00 that represents our next target, noting that the EMA50 keeps supporting the suggested bullish wave.

Therefore, we are waiting for more rise in the upcoming sessions, noting that breaking 1858.00 will stop the suggested positive scenario to press on the price to achieve some temporary bearish correction before resuming the expected bullish trend.

The expected trading range for today is between 1858.00 support and 1895.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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