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Daily Technical analysis for May 20, 2021

EUR/USD

Current level – 1.2181

The pair managed to reach the resistance at 1.2240, after which the market retraced and, at the time of writing the analysis, the pair is testing the breach in the area around​​1.2172. Current levels suggest the development of a more complex pullback before the main movement is to continue. It is possible that the market will remain in the range between 1.2172 and 1.2240, and movements towards the 1.2130 support are also not excluded. Expectations for the continuation of the upward trend remain unchanged, as a breach of 1.2240 would open the way towards the next target at 1.2340. Today, traders can expect increased activity at 12:30 GMT, when the weekly data on initial jobless claims for the United States will be announced.

USD/JPY

Current level –  109.09

The market does not seem to be able to find a clear direction and, at least for now, trading remains locked between the support at 108.44 and the resistance at 109.67. The first local resistance is 109.26, which has already been violated several times and therefore its reliability is yet to be confirmed. The same goes for the support at 108.83. At the moment, there is no clear trend and the market mood is mixed. However, the future development of the pair can be largely dictated by the fundamental strength or weakness of the U.S. dollar.

GBP/USD

Current level – 1.4112

The Cable could not hold onto the gains around the resistance at 1.4200 and the bears entered the market. Due to the breach of the 1.4144 support, expectations are for a long and complex retracement, which should be limited by the support at 1.4035. The bulls can expect intraday support at around 1.4080. Sentiment and expectations for new growth, however, remain unchanged.

Gold price faces mixed trades

Gold price bounced bearishly after touching 1890.00 level, to move below the main bullish channel’s resistance, noticing that the price begins today with clear positivity, which supports the continuation of our main bullish trend expectations, which targets 1900.00 as a next main station.

The EMA50 continues to support the suggested bullish wave, which will remain valid and active unless breaking 1858.00 and holding below it.

The expected trading range for today is between 1865.00 support and 1900.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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