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Daily Technical analysis for May 31, 2021

EUR/USD

Current level – 1.2198

The currency pair breached the support at 1.2170 during Friday’s trading session, but the sell-off was limited by the level at 1.2126 and the EUR/USD quickly returned into the range in which it was trading for the last couple of days – 1.2170-1.2238. The expectations are for the pair to continue to trade in that range at the beginning of the week, while the more important economic news, which could push the EUR/USD towards a test of either boundary, is the CPI data for the euro area (Tuesday; 09:00 GMT) and the non-farm payrolls data for the U.S. (Friday; 12:30 GMT).

USD/JPY

Current level –  109.69

The dollar’s appreciation against the yen was limited by the resistance at 109.93 and now the pair is headed towards a test of the support level of 109.67. The forecast is for the pair to breach this support and aim for the next one, which is located at 109.21. In the positive direction, the first resistance level is the one at 109.93.

GBP/USD

Current level – 1.4193

The Cable continues to trade in the narrow range of 1 figure, between 1.4101-1.4208. Neither the bulls, nor the bears are currently managing to prevail and breach either of the boundaries, which could form the short-term expectations of the market participants. The most important economic news this week, which could make an impact on the pair, is the manufacturing PMI data for the U.K. (Tuesday; 08:30 GMT) and the services PMI data, again for the U.K. (Thursday; 08:30 GMT).

Gold price activates the positive pattern

Gold price raliled upwards strongly after the completion of the rising wedge pattern mentioned in our recent reports, to surpass 1900.00 barrier and open the way to head towards our waited positive target at 1928.60, which supports the continuation of our bullish overview, noting that surpassing this level will extend the bullish wave to reach 1960.00 as a next main station.

On the other hand, we should note that the continuation of the bullish wave requires holding above 1890.00.

The expected trading range for today is between 1895.00 support and 1935.00 resistance.

The expected trend for today: Bullish

Source: Technical analysis

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