DAILY TECHNICAL ANALYSIS FOR MAY 18, 2022petar skakalov
Current level – 1.0541
The pair marked а third consecutive day of gains as yesterday’s session ended near the highs for the day. Trading has again resumed in the range between the support at 1.0482 and the resistance at 1.0576. Recent moves suggest a test of this resistance, however, and the expectations are for an initial pullback towards 1.0482 or 1.0440. The bulls would expect better levels before they could enter the market, in order to prepare for a test and a possible breach of the resistance. With a breach of the 1.0576 zone, a more substantial rally, with targets of 1.0760 and even 1.0920, can be expected. If this scenario fails, then the bearish pressure can be expected to persist and the annual support at 1.0350 could eventually be disrupted. Today, increased activity can be expected around the announcement of the CPI data for the eurozone at 09:00 GMT.
Current level – 129.14
As expected, prices below 128.70 attracted the attention of the bulls and they entered aggressively at the support of 127.48. At the moment, the market is consolidating and growth has slowed due to the weaker U.S. dollar. The first significant resistance for the bulls is 129.60. It is expected to hold or, if violated, to be short-lived. It is possible that the pair has begun sliding in a downtrend belonging to the lower time frames, but this will become clear at the end of the current consolidation. An alternative scenario is for the pair to continue trading in the wide range between 127.50 and 131.20.
Current level – 1.2481
The situation of the Cable resembles that of the EUR/USD. The area at around 1.2170 offered serious support to the bulls, and yesterday the rally gained momentum. It is likely that prices will retrace towards 1.2400, where the bearish pressure should remain limited. This would confirm the bullish attitudes and the change in market sentiment. The stability of the movement would be revealed after the first correction, and if the rally continues, then a test of 1.2600 can be expected. There is still no confirmation of a trend reversal and the recent gains may simply turn out to be a short position squeeze.
Gold price resumes the decline
Gold price bounced bearishly after testing the bearish channel’s resistance that appears on the chart, to keep the bearish trend scenario valid and active on the intraday and short term basis, supported by the negative pressure formed by the EMA50, and we believe that the way is open to head towards our main waited target at 1780.25.
Holding below 1850.00 is important to continue the suggested bearish wave, noting that breaking 1780.25 will extend the bearish wave to reach 1765.00 as a next negative target.
The expected trading range for today is between 1785.00 support and 1825.00 resistance.
The expected trend for today: Bearish
Source: Technical analysis