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DAILY TECHNICAL ANALYSIS FOR MAY 23, 2023

EUR/USD

Current level – 1.0805

For the single European currency, the week began with an attempt to recover its positions against the dollar. The bulls broke through the resistance at 1.0800 and are trying to hold above it, but have yet to test the next level at 1.0845. In the event of an attempt and in case of success, the next important level for them will be the resistance at 1.0896. If that doesn’t happen, the bears would once again take the upper hand, heading for the support at 1.0761. For now, this level manages to stop their pressure, but the sentiments continue to be negative.

USD/JPY

Current level – 138.56

With the Ninja, the bears could not overcome the resistance at 137.40 and the currency pair entered a consolidation phase in the range of 137.40 – 138.80. The sentiment is positive and the bulls will surely test the resistances at 138.83 and 139.00. However, we cannot completely rule out that the bears will try again to break the support at 137.40, but their strength will probably not show until a test of the next level at 136.87.

GBP/USD

Current level – 1.2430

For now, the resistance at 1.2444 remains a serious hurdle for the pound and the bulls’ attempts to overcome it have yet to succeed. Although the rate is holding tight around the mentioned level, the possibility of a correction in the negative direction should not be ruled out in case the bears take the initiative to attack the support at 1.2385. Important economic data for the pound is expected, which may have an impact on the exchange rate. Today, at 08:30 GMT will be released data on the estimated index of the business activity of the manufacturing sector and for the service sector, and tomorrow at 06:00 GMT will be released the consumer price index.

Midday update for Gold

Gold prices shows more bearish bias to gradually approach our waited target at 1945.20, and we expect the continuation of the decline to surpass this level and target the next correctional level at 1913.15 on the near term basis.

Therefore, the bearish trend will remain suggested for today, it might be preceded by some temporary sideways fluctuation affected by stochastic positivity, reminding you that it is important to hold below 1977.25 to achieve the expected targets.

The expected trading range for today is between 1945.00 support and 1977.00 resistance.

The expected trend for today: Bearish

Source: Technical analysis

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