Daily Technical analysis for May 27, 2021
Current level – 1.2187
The euro lost some of its value against the dollar during yesterday’s trading session as the pair managed to break through and stay below the level of important support – now resistance, at 1.2238. The decline is expected to continue and the pair is to focus on a test of the first important support at 1.2170 and, potentially, 1.2126, if 1.2170 does not hold the bearish pressure. The key resistance is the mentioned level at 1.2238. Today, investors’ attention will be focused on the data on the preliminary GDP for the United States (12:30 GMT).
Current level – 109.08
The currency pair is in a consolidation phase, with the market still unable to find a clear direction.. That being said, the forecasts are for the resistance at 109.21 to hold and for the yen to start rising in value against the greenback.This will most likely be followed by a test of the important support at 108.55, a breach of which may signal the beginning of a downward trend.
Current level – 1.4106
The formation of a double top at the levels of around 1.4230 is a strong signal for a downward movement and it might signal the beginning of a new downward trend. Of course, the double top has not yet been confirmed as a formation and, at the moment, investors’ attention is focused on the test and a possible breach of the key support at 1.4100. An important level of resistance is the mentioned local high at 1.4230.
Gold price gains the positive momentum
Gold price settles around 1895.00 level after the decline that it witnessed yesterday, to keep its stability above the intraday bullish channel’s support line that appears on the chart, noticing that stochastic gained clear positive momentum now, to support the chances of resuming the expected bullish trend on the intraday and short term basis, which its next target located at 1928.60.
Therefore, we will continue to suggest the bullish trend for the upcoming period conditioned by the price stability above 1880.00.
The expected trading range for today is between 1890.00 support and 1928.00 resistance.
The expected trend for today: Bullish
Source: Technical analysis