Daily Forex Technicals, May 22nd 2017

EUR/USD

Forecast prepared by Sam Shenker, Trader

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

EUR/USD Euro bulls maintained their onslaught on dollar positions as single currency traders pushed the pair above the 1.1200 figure in a bid to target greenback defenses around 1.1314.a level defend by the key 76.4 Fib of the 1.1616-1.0339 US Dollar rally. A further move to the upside will most likely see US Dollar traders 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 see single currency supporters set their sights on the psychologically important 1.1500 figure, a 2016 high and a gateway to 1.1714, a 2015 high. Indicators are mixed with 50-day SMA and 200-day SMA setting up for “Golden Cross” crossover, which would generate a strong bullish signal. ADX is at 42.46 and continuing to climb higher, thus signaling 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 head 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 90.04 Overbought 1.1314 R1 76.4 Fib of the 1.1616-1.0339 Dollar Rally
RSI 72.55 Overbought Level Support Details
MACD 0.003 Bullish 1.1100-30 S1 2016 Multiple Support / Resistance Points
ADX(DMI) 42.46 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.05.22.17Charts 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 saw their advance stall around the psychologically important 1.3000 handle. As pair continues to trade around fresh 2017 highs. A sustained momentum to the upside will most likely see the Pound Sterling traders 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 move to the upside will most likely see Pound bulls advance and test dollar defenses around 1.3279, a resistance established by a September 15th, 2016 Intraday Reversal High. A further move to the update will most likely continue to see pair head higher and test the dollar offers around 1.3481, a level defended by the 50.0 Fib of the 1.5006-1.1956 US Dollar Rally and a gateway to the psychologically important 1.3500 handle. Indicators are neutral with ADX at 41.90 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 72.35 Neutral 1.3121 R1 38.2 Fib of the 1.5006-1.1956 Dollar Rally
RSI 62.96 Neutral Level Support Details
MACD 0 Neutral 1.2923 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.05.22.17Charts 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 the pair continues to tread sideways with neither side willing to give up any ground. Japanese Yen traders remain defended by the 50-Day SMA at 111.39, as any upside encroachments by the greenback traders were stopped by the defending yen bulls. As the stalemate continues and yen traders manage to break the dollar defenses and push the pair lower, a move to the downside will most likely see the USD/JPY test the bids below psychologically important 110.00 handle, a level defended by the key 200-Day SMA at 109.81. A sustained momentum by the yen bulls will likely see the pair slide below 109.00 figure and test greenback bids around 108.88, a level defended by the key 50.0 Fib of the 118.75-99.00 US Dollar Rally. However if US Dollar bulls manage to counterattack and break the stalemate, 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 and continues to send 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 112.32 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.05.22.17Charts created using eSignal – Prepared by Sam Shenker

 

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