Short-term Ichimoku cloud indicator analysis of EURUSD

EURUSD has broken out of the Kumo resistance and is making higher highs. Bulls have recaptured 1.11 as price is now turning daily trend to bullish. The weak bullish signal that we gave when the tenkan-sen crossed above the kijun-sen is now being strengthened.

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Price so far has respected both the tenkan-sen and kijun-sen indicators. Even at the recent pull back price held above them and bounced strongly back inside the cloud. Now that price has broken out and above the Kumo we have another bullish signal. It is important for bulls to keep price above the Kumo and above the tenkan-sen and kijun-sen indicators. Support by these two indicators is found at 1.10 and at 1.0935.

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Weekly analysis of Gold

Gold price started the week close to where it ended. Price pulled back below $1,700 critical support but until the end of the week price managed to reclaim the $1,700-$1,710 support area. Gold bulls remain in control of the trend and could try to push price to new higher highs once again.

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Black lines -bearish RSI divergence

The weekly RSI continues to provide a weekly bearish divergence. This does not mean that price cannot go towards $1,770-80. This is key resistance now. Support remains key at $1,700 and breaking below it will increase chances of a move towards $1,650-30. Currently I prefer to be neutral and look for shorting opportunities when and if price makes new highs close to $1,780.

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Technical Analysis of GBP/USD for May 29, 2020:

Technical Market Outlook:

The GBP/USD pair is challenging the local high of 1.2362 again. Despite the fact, that the market has made the Pin Bar candlestick that retraced the up trend almost in 100%, the bulls are pushing the prices and targeting the next level seen at 1.2381. The momentum is still strong and positive, so odd for a local up trend continuation after the range breakout are high. The last swing low and technical support is seen at the level of 1.2072, but there is still a long way to test this level of support.

Weekly Pivot Points:

WR3 - 1.2499

WR2 - 1.2389

WR1 - 1.2274

Weekly Pivot - 1.2176

WS1 - 1.2057

WS2 - 1.1949

WS3 - 1.1823

Trading Recommendations:

On the GBP/USD pair the main trend is down, but the reversal will be possible when the coronavirus pandemic is tamed. The key long-term technical support has been recently violated (1.1983) and the new one is seen at the level of 1.1404. The key long-term technical resistance is seen at the level of 1.3518. Only if one of these levels is clearly violated, the main trend might reverse (1.3518) or accelerate (1.1404). The market might have done a Double Top pattern at the level of 1.2645, so the price might move lower in the longer-term.

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Technical Analysis of EUR/USD for May 29, 2020:

Technical Market Outlook:

The EUR/USD pair has broken above the level of 1.1050 and keeps going higher inside of the ascending channel. The bulls are then pushing through and the market conditions are still in their favor, so does the increasing momentum. The next target for bulls is seen at the level of 1.1148 and 1.1190. The immediate support is seen at the levels of 1.1050, 1.1017 and 1.0991. Please notice, the market conditions are starting to become overbought, so a corrective pull-back is still on the table.

Weekly Pivot Points:

WR3 - 1.1206

WR2 - 1.1107

WR1 - 1.0997

Weekly Pivot - 1.0901

WS1 - 1.0789

WS2 - 1.0688

WS3 - 1.0567

Trading Recommendations:

On the EUR/USD pair the main long term trend is down, but the reversal is possible when the coronavirus pandemic will be tamed. The key long-term technical support is seen at the level of 1.0336 and the key long-term technical resistance is seen at the level of 1.1540. Only if one of this levels is clearly violated, the main trend might reverse (1.1540) or accelerate (1.0336).

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Fractal analysis of the main currency pairs on May 29

Forecast for May 29:

Analytical review of currency pairs on the scale of H1:

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For the euro / dollar pair, the key levels on the H1 scale are: 1.1254, 1.1197, 1.1168, 1.1123, 1.1071, 1.1041 and 1.0994. Here, we are following the ascending structure of May 25. The continuation of the upward movement is expected after the breakdown of the level of 1.1123. In this case, the target is 1.1168. Price consolidation is in the range of 1.1168 - 1.1197. For the potential value for the top, we consider the level of 1.1254. Upon reaching which, we expect a downward pullback.

A short-term downward movement is expected in the range of 1.1071 - 1.1041, hence, there is a high probability of an upward reversal. The breakdown of the level of 1.1041 will lead to an in-depth correction. In this case, the target is 1.0994. This level is a key support for the ascending structure.

The main trend is the local structure for the top of May 25

Trading recommendations:

Buy: 1.1125 Take profit: 1.1168

Buy: 1.1198 Take profit: 1.1254

Sell: 1.1070 Take profit: 1.1041

Sell: 1.1039 Take profit: 1.1000

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For the pound / dollar pair, the key levels on the H1 scale are: 1.2566, 1.2515, 1.2438. 1.2361, 1.2259, 1.2208 and 1.2160. Here, we are following the ascending structure of May 25.The continuation of the upward movement is expected after the breakdown of the level of 1.2361. In this case, the target is 1.2438. Price consolidation is near this level. The breakdown of the level of 1.2440 should be accompanied by a pronounced upward movement. Here, the target is 1.2515. For the potential value for the top, we consider the level of 1.2566. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is expected in the range of 1.2259 - 1.2208. The breakdown of the last value will lead to the cancellation of the upward structure from May 25. In this case, the first target is 1.2160.

The main trend is the local structure of May 25

Trading recommendations:

Buy: 1.2361 Take profit: 1.2436

Buy: 1.2440 Take profit: 1.2515

Sell: 1.2257 Take profit: 1.2210

Sell: 1.2206 Take profit: 1.2160

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For the dollar / franc pair, the key levels on the H1 scale are: 0.9735, 0.9689, 0.9663, 0.9645, 0.9618, 0.9586, 0.9564 and 0.9533. Here, we are following the descending structure of May 25. The continuation of the downward movement is expected after the breakdown of the level of 0.9618. In this case, the target is 0.9586. Short-term downward movement, as well as consolidation is in the range of 0.9586 - 0.9564. For the potential value for the bottom, we consider the level of 0.9533. Upon reaching which, we expect an upward pullback.

A short-term upward movement is possible in the range of 0.9645 - 0.9663. The breakdown of the last level will lead to an in-depth correction. In this case, the target is 0.9689. This level is a key support for the bottom.

The main trend is the descending structure of May 25

Trading recommendations:

Buy : 0.9645 Take profit: 0.9661

Buy : 0.9665 Take profit: 0.9687

Sell: 0.9616 Take profit: 0.9590

Sell: 0.9584 Take profit: 0.9566

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For the dollar / yen pair, the key levels on the scale are : 107.60, 107.38, 107.23, 107.04, 106.77, 106.58 and 106.33. Here, we are following the development of the downward cycle of May 19. The continuation of the downward movement is expected after the breakdown of the level of 107.04. In this case, the target is 106.77. Short-term downward movement, as well as consolidation are in the range of 106.77 - 106.58. For the potential value for the bottom, we consider the level of 106.33. Upon reaching which, we expect an upward pullback.

A short-term upward movement is possible in the range of 107.23 - 107.38. The breakdown of the last level will lead to an in-depth correction. Here, the goal is 107.60. This level is a key support for the downward structure.

The main trend: the downward cycle of May 19

Trading recommendations:

Buy: 107.23 Take profit: 107.36

Buy : 107.40 Take profit: 107.60

Sell: 107.02 Take profit: 106.80

Sell: 106.76 Take profit: 106.60

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For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.3942, 1.3873, 1.3829, 1.3758, 1.3705 and 1.3627. Here, we are following the development of the medium-term downward cycle of May 14. A short-term downward movement is expected in the range of 1.3758 - 1.3705. The breakdown of the latter level will allow us to expect movement to a potential target - 1.3627. Upon reaching this level, we expect consolidation, as well as an upward pullback.

A short-term upward movement is possible in the range of 1.3829 - 1.3873. The breakdown of the latter level will lead to the development of an in-depth correction. Here, the potential goal is 1.3942. We expect the initial conditions for the upward cycle to be formed to this level.

The main trend is the medium-term downward trend of May 14

Trading recommendations:

Buy: 1.3829 Take profit: 1.3870

Buy : 1.3875 Take profit: 1.3940

Sell: 1.3756 Take profit: 1.3709

Sell: 1.3703 Take profit: 1.3637

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For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6792, 0.6760, 0.6705, 0.6666, 0.6614, 0.6585, 0.6552 and 0.6509. Here, we are following the development of the upward cycle of May 15.The continuation of the upward movement is expected after the breakdown of the level of 0.6666. In this case, the target is 0.6705. Price consolidation is near this level. The breakdown of the level of 0.6705 should be accompanied by a pronounced upward movement. Here, the target is 0.6760. For the potential value for the top, we consider the level of 0.6792. Upon reaching which, we expect consolidation, as well as a downward pullback.

Consolidated movement is possible in the range of 0.6614 - 0.6585. The breakdown of the last level will lead to an in-depth correction. Here, the target is 0.6552. This level is a key support for the upward structure and its breakdown will lead to the formation of initial conditions for the downward cycle. In this case, the target is 0.6509.

The main trend is the upward structure of May 15

Trading recommendations:

Buy: 0.6666 Take profit: 0.6705

Buy: 0.6707 Take profit: 0.6760

Sell : 0.6614 Take profit : 0.6587

Sell: 0.6583 Take profit: 0.6552

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For the euro / yen pair, the key levels on the H1 scale are: 120.24, 119.97, 119.51, 119.18, 119.00, 118.52, 118.25 and 117.77. Here, we continue to monitor the ascending structure of May 22. The continuation of the upward movement is expected after passing through the noise range of 119.00 - 119.18. In this case, the target is 119.51. Price consolidation is near this level. The breakdown of the level of 119.51 should be accompanied by a pronounced upward movement. Here, the goal is 119.97. For the potential value for the top, we consider the level of 120.24. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 118.52 - 118.25, hence, the high probability of an upward reversal. The breakdown of the level of 118.25 will lead to in-depth correction. Here, the goal is 117.77. This level is a key support for the top.

The main trend is the local ascending structure of May 22

Trading recommendations:

Buy: 119.18 Take profit: 119.50

Buy: 119.53 Take profit: 119.95

Sell: 118.52 Take profit: 118.27

Sell: 118.23 Take profit: 117.85

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For the pound / yen pair, the key levels on the H1 scale are : 135.26, 134.28, 133.86, 133.16, 132.13, 131.65 and 130.98. Here, we are following the development of the ascending structure of May 15. The continuation of the upward movement is expected after the breakdown of the level of 133.16. In this case, the target is 133.86. Price consolidation is in the range of 133.86 - 134.28. For the potential value for the top, we consider the level of 135.26. Upon reaching which, we expect consolidation, as well as a downward pullback.

A short-term downward movement is possible in the range of 132.13 - 131.65. The breakdown of the last level will lead to an in-depth correction. Here, the potential target is 130.98. This level is a key support for the upward structure.

The main trend is the upward structure of May 15

Trading recommendations:

Buy: 133.16 Take profit: 133.86

Buy: 134.30 Take profit: 135.25

Sell: 132.13 Take profit: 131.66

Sell: 131.63 Take profit: 131.00

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