Daily Forex Technicals May 21st, 2017

EUR/USD

Forecast prepared by Sam Shenker, Trader

Please email Sam@dailytechnicals.com with any questions or comments

EUR/USD Euro bulls staged a coup following the events of last week as dollar bulls retreated after the loss of the psychologically important 1.1000 handle. As single currency traders continue to hammer on greenback positions, a likely move higher will most likely see EUR/USD advance and target the bids around 1.1314.a level defend by the key 76.4 Fib of the 1.1616-1.0339 US Dollar rally. A sustained momentum to the upside will most likely see Dollar bulls retreat and try to mount a counter attack around 1.1415-1.1426 price zone, a level defended by the June 2016 Double Top Reversal Highs. A break above greenback defenses will likely put the psychologically important 1.1500 figure within striking distance of advancing Euro bulls. Indicators are mixed with ADX at 42.18 continuing to signal an existence of a strong trend. MACD oscillator is trending up, thus supporting a trending market, while MACD remains strongly in a bullish territory. Stochastic remains well above 80.00, signaling overbought conditions. RSI continues to tread above the 70.00 level, as pair continues to tread higher.

Key Levels & Technical Indicators

Indicators Daily Chart Level Resistance Details
      1.1616 R3 May 3rd, 2016 Intraday Reversal High
  Value Signal 1.1415-26 R2 June 2016 Double Top Reversal High
Stochastic 72.83 Overbought 1.1314 R1 76.4 Fib of the 1.1616-1.0339 Dollar Rally
RSI 90.83 Overbought Level Support Details
MACD 0.003 Bullish 1.1100-30 S1 2016 Multiple Support / Resistance Points
ADX(DMI) 42.18 Strong Trend 1.1076 S2 May 18th, 2017 Intraday Reversal Low
      1.1023 S3 May 5th, 2017 Intraday Reversal High / Prior Resistance

US FED RATE 1.00% / ECB RATE 0.00% / Carry Trade 1.00% / Carry Trade Receiver EUR/USD Short

EUR.USD.05.21.17Charts created using eSignal – Prepared by Sam Shenker

GBP/USD

Forecast prepared by Sam Shenker, Trader

Please email Sam@dailytechnicals.com with any questions or comments

GBP/USD Sterling bulls continued their stealthy advance as pair tests the Dollar defenses around the psychologically important 1.3000 figure, a level not seen since September of 2016. A sustained assault on the greenback position will most likely see the British Pound push the pair higher and test the bids around 1.3121, a level defended by the 38.2 Fib of the 1.5006-1.1956 US Dollar Rally. A further break to the upside will likely see GBP/USD extend its upside momentum and see greenback traders retreat and try to counterattack around 1.3279, a resistance established by a September 15th, 2016 Intraday Reversal High. A sustained momentum on the part of Pound bulls will likely continue to see pair make steady advances into 2016 price ranges. Indicators are neutral with ADX at 41.87 continuing to signal an existence of a strong trend. MACD oscillator remains close to zero, thus supporting a trending market with MACD setting up for a bearish crossover. Stochastic is treading away from overbought levels and setting up for a bearish crossover. RSI continues to tread below the 70.00 level, thus giving Pound bulls further support as pair likely continues to climb higher.

Key Levels & Technical Indicators

Indicators Daily Chart Level Resistance Details
      1.3481 R3 50.0 Fib of the 1.5006-1.1956 Dollar Rally
  Value Signal 1.3279 R2 September 15th, 2016 Intraday Reversal High
Stochastic 71.42 Neutral 1.3121 R1 38.2 Fib of the 1.5006-1.1956 Dollar Rally
RSI 62.35 Neutral Level Support Details
MACD 0 Neutral 1.2922 S1 20-Day SMA
ADX(DMI) 41.87 Strong Trend 1.2757 S2 April 21st,  2017 Intraday Reversal Low
      1.2674 S3 50-Day SMA

US FED RATE 1.00% / BOE RATE 0.25% / Carry Trade 0.75% / Carry Trade Receiver GBP/USD Short

GBP.USD.05.21.17Charts created using eSignal – Prepared by Sam Shenker

USD/JPY

Forecast prepared by Sam Shenker, Trader

Please email Sam@dailytechnicals.com with any questions or comments

USD/JPY As both sides continue to vie over the direction, a sustained move the yen bulls will likely see the pair head lower and test the bides below psychologically important 110.00 handle, a level defended by the key 200-Day SMA. A further break below will likely see greenback bulls try to mount a defense below 109.00 figure, a level supported at 108.88 by the key 50.0 Fib of the 118.75-99.00 US Dollar Rally. However if US Dollar bulls manage to stall the yen advance and reverse the tide, a move to the upside will likely see the pair advance and target the yen offers around 112.32, a resistance established by the 20-day SMA. Indicators are neutral with ADX at 28.78 signaling an existence of a weak trend. MACD continues to tread in the bullish territory with MACD oscillator signaling potential bearish conditions. Stochastic is treading slightly above the oversold level while sending mixed signals. RSI remains neutral with indicator treading below 50.

Key Levels & Technical Indicators

Indicators Daily Chart Level Resistance Details
      115.50 – 62 R3 Jan 19 / Mar 10, 2017 Intraday Reversal Highs
  Value Signal 114.37 R2 May 10th / 11th, 2017 Matching Highs
Stochastic 25.33 Approaching Oversold 112.33 R1 20-Day SMA
RSI 44.54 Neutral Level Support Details
MACD -0.41 Bearish 109.81 S1 200-Day SMA
ADX(DMI) 28.78 Weak Trend 108.88 S2 50.0 Fib of the 118.75 – 99.00 of the US Dollar Rally
      108.13 S3 April 17th, 2017 Intraday Reversal Low / Hammer Candle

US FED RATE 1.00% / BOJ RATE -0.10% / Carry Trade 1.10% / Carry Trade Receiver USD/JPY Long

USD.JPY.05.21.17Charts created using eSignal – Prepared by Sam Shenker

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