Technical analysis recommendations for EUR/USD and GBP/USD on May 21

By | May 21, 2020
InstaForex
Technical analysis recommendations for EUR/USD and GBP/USD on May 21

Relevance up to 04:00 2020-05-22 UTC–5

Economic calendar (Universal time)

Here are the events that await us in the afternoon:

12:30 the number of initial unemployment claims (USA),

12:30 manufacturing activity index (USA),

14:00 sales in the secondary housing market (USA),

18:30 speech by the head of the Fed.

EUR / USD

analytics5ec6489060f7c.jpg

The players to increase continue to fight for a change in the situation. Yesterday, they managed to close the working day above the resistance levels of 1.0965-85 (the lower boundary of the daily cloud + weekly Fibo Kijun). To save the result, it is necessary to do the same thing in the format of weeks. Failure can contribute to the formation of a new rebound from the resistance encountered, but something like this has already happened more than once in a not so long history. The range of 1.1067-88 (the upper boundary of the daily cloud + weekly Kijun and Senkou Span A + monthly Tenkan) and the target for the breakdown of the H4 cloud (100% 1.1020), developed on the first target yesterday, which now remain the upward benchmarks. The nearest support today is still concentrated in the area of 1.0893-73 (daily cross + weekly Tenkan).

analytics5ec652fdf24ad.jpg

At the time of analysis, the pair is in the downward correction zone again at H1, while fighting for the central Pivot level (1.0965). It should be noted that the analyzed technical indicators have already been reconfigured today and currently support the development of correction. Its main reference is the weekly long-term trend located today at 1.0885. The S1 (1.0932) may be the nearest support. The development of a downward correction may interfere with the plans of the players to increase to reach a positive result in the breakdown of the resistance encountered in the older halves. Therefore, it is important for the players to increase today and not to retreat too deeply during the correction. A favorable scenario for the bulls is another update of the previous daily high, which will open the way to the next resistance of the classic Pivot levels 1.1012 (R1) – 1.1045 (R2) – 1.1092 (R3).

GBP / USD

analytics5ec648c563d95.jpg

The players to upgrade have not yet been able to achieve a result, since too many levels have joined forces in one place. The tested resistance zone includes the daily cross of Ichimoku and the daily cloud as the most significant level and benchmark of this zone can be noted daily Senkou Span B (1,2305). Under the current conditions, the weekly Fibo Kijun (1.2214) provides attraction and support. As a result, the conclusions and expectations voiced earlier remain valid.

analytics5ec653109c5aa.jpg

The bears in the lower halves try to cast doubt on the opponent’s achievements and regain support for the main technical instruments. The key levels on H1 are located today in the area of 1.2201 – 47 (central Pivot level + weekly long-term trend). Nevertheless, the situation is such that the rise carried out at the beginning of the week turned out to be quite deep, so you still have to work hard to restore the downward trend. It should be noted that if the support of the weekly long-term trend (1.2201) is now able to defend the interests of players to increase and the pair regains support for the central Pivot level (1.2247), then the players will start testing resistance of the higher halves again, perhaps, they are a little luckier his time.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by David Bale,
Analytical expert
InstaForex Group © 2007-2020

Benefit from analysts’ recommendations right now

Top up trading account

Get a bonus from InstaForex

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

InstaForex