Daily analysis of major pairs for May 22, 2017
The EUR/USD gained 290 pips last week, as price closed slightly above the support line at 1.1200. This week, price may target the resistance lines at 1.1250, 1.1300 and 1.1350. Some EUR pairs would trend higher, while some would trend lower this week. However, the EUR/USD is supposed to trend higher.
EUR/USD: The EUR/USD gained 290 pips last week, as price closed slightly above the support line at 1.1200. This week, price may target the resistance lines at 1.1250, 1.1300 and 1.1350. Some EUR pairs would trend higher, while some would trend lower this week. However, the EUR/USD is supposed to trend higher.
USD/CHF: This currency trading instrument lost 270 pips last week, closing below the resistance level at 0.9750. Price has lost 340 pips since May 12 – something that has resulted in a strong Bearish Confirmation Pattern in the market. The outlook on the USD/CHF remains bearish for this week, and further southwards movement would be witnessed as the support levels at 0.9700, 0.9650 and 0.9600 are being tested.
GBP/USD: This pair consolidated in the first few days of last week, and then trended upwards, to emphasize the recent bullish outlook on the market. Price is now above the accumulation territory at 1.3000, going towards the distribution territory at 1.3050, which should be breached this week as price rallies more and more.
USD/JPY: The USD/JPY experienced a major pullback last week. In the first few days of the week, price lost about 300 pips, before consolidating in the first few days of last week. There is a bearish outlook on the market, and it would continue to be logical as long as price does not go above the supply level at 114.00 (which would, however, require extraordinary buying pressure).
EUR/JPY: This cross pair went upwards on Monday and Tuesday, came down on Wednesday and Thursday, and then went up again on Friday. Unlike its USD/JPY counterpart, the EUR/JPY cross has not gotten bearish, and one factor helping the situation is a measure of strength in the EUR itself. Price could gain additional 200 pips this week, especially when the Yen becomes weak.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
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