Weekly EURUSD technical analysis

EURUSD is ending the week below 1.1170. Despite reaching 1.1260 resistance area price could not break out and above the long-term bearish channel. The rejection was a bearish sign and as we warned the inability to break above 1.1230 combined with a double rejection at 1.1230 has led us to expect a move towards 1.11 is coming.

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Red lines - bearish channel

EURUSD has been trading inside this red bearish channel for some time now. The upper channel boundary remains important and confirmed resistance as price could never close above it over the last few months. The rejection at 1.1260 has led to a break below 1.12 and we are now seeing a potential move towards 1.11 or lower as price has also broken below 1.1170. EURUSD remains in a bearish trend as long as price is below 1.1230-1.1260. The weekly black candle implies more downside is more probable, unless bulls retake 1.1260.

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Weekly Gold analysis

Gold price started this week on a strong foot breaking above $1,290 and reaching $1,302. However this strength was short-lived and it now looks more like a fake break out and a bull trap. Gold price ends the week below $1,280. The weekly candle cautions for more downside to come.

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Blue line - major trend line resistance

Red line - major trend line support

Red rectangle - short-term support

Gold price is ending the week below $1,280 and the bearish black candle with the long upper tail implies that the move above $1,290 was most probably a fake break out. Gold price has support at $1,276 as we mentioned in previous posts and a break below it will open the way for another leg down in Gold price towards $1,250-30 area. Resistance remains at $1,300 as we noted in previous posts. Bulls need to recapture and stay above of $1,300 in order for them to be in control of the trend. The major rejection back in January at $1,347 may lead to a move towards the red upward sloping major trend line support. This gives us a target between $1,200-$1,220.

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May 17, 2019 : EUR/USD Intraday technical analysis and trade recommendations.

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Few weeks ago, a bullish Head and Shoulders reversal pattern was demonstrated around 1.1200.

This enhanced further bullish advancement towards 1.1300-1.1315 (supply zone) where significant bearish rejection was demonstrated on April 15.

Short-term outlook turned to become bearish towards 1.1280 (61.8% Fibonacci) then 1.1235 (78.6% Fibonacci).

For Intraday traders, the price zone around 1.1235 (78.6% Fibonacci) stood as a temporary demand area which paused the ongoing bearish momentum for a while before bearish breakdown could be executed on April 23.

That's why, the mentioned price zone around 1.1235-1.1250 has turned into supply-zone to be watched for bearish rejection.

Shortly-after, the market has failed to sustain bearish pressure below the price Level of 1.1175 during last week's consolidations.

That's why, another bullish pullback was expected to occur towards the price zone of 1.1230-1.1250 where significant bearish pressure was expected to be existing there.

Recently, the EURUSD pair has been maintained above the depicted key-zone (1.1175) since May 3.

However, a bearish breakout below 1.1175 was achieved Today. This enhances further bearish decline towards 1.1115.

Trade recommendations :

Conservative traders who were advised to have a SELL entry around the supply zone (1.1235-1.1250) should lower their S/L towards 1.1190 to secure more profits.

Remaining Target level should be projected towards 1.1115.

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EUR/USD: Chinese trick, Italian populism, and British failure

The currency market continues to be dominated by anti-risk sentiment. The news background is getting darker every day, putting pressure on both the euro and other high-yield currencies. The fundamental picture really leaves much to be desired: only in the last day, it became known that the Brexit talks finally failed, China is ready to withdraw from the negotiation process with the United States, and Italian politicians intend to violate the EU budget rules. And this is only the basic, most high-profile rumors that determine investor sentiment. Macroeconomic reports, whatever they were – with a plus or minus sign – faded into the background and actually lost their influence on the dynamics of trading. The financial world is frozen in anticipation of global changes and important decisions – and these decisions are primarily political in nature.

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Even during the Asian session, the market was stirred up by the news that China may withdraw from the negotiation process with Washington. Although this information is not official, it was circulated in the state media of China. According to journalists, the Chinese side "does not see sincere intentions" of the Americans to find a compromise and conclude a mutually beneficial deal. Instead, the White House, according to representatives of the PRC, professes a policy of trade protectionism that prevents negotiations. Most likely, we are talking about Huawei, for which Trump announced a state of emergency in the country in the field of information and communication infrastructure. This allowed the US Department of Commerce to blacklist Huawei and 70 associated companies from using US components and technology. It is worth noting that this company is one of the world's largest suppliers of telecommunications equipment so Beijing could not ignore Trump's actions.

There is another version explaining the demarche of the Chinese side. According to some experts, Xi Jinping decided to take a wait-and-see position against the backdrop of the upcoming US presidential elections, which are only a year and a half away. It is worth noting that before Trump was almost an absolute favorite of the presidential campaign in 2020 – until the election scene came Joe Biden. The representative of the Democrats ahead of schedule won the primaries (he is much ahead of the nearest rivals), so now he focused only on one political "target", unleashing a flurry of criticism on the incumbent President.

This tactic is already bearing fruit: according to the first survey, which was conducted by the influential American publication The Hill, former US Vice President Joe Biden is 6 points ahead of Donald Trump in the ranking of presidential candidates. So, 43% said they would choose Biden, and 37% said they would prefer Trump. This electoral advantage is rather indicative: the incumbent President has a real rival, who even at the start is ahead of him in terms of points. By the way, The Hill is considered a publication, "favor" relating to the Republicans.

Given this disposition, the Chinese can continue to take a defensive position in the hope that the White House will change its owners next fall. Trump has already warned China against such intentions, hinting at the aggravation of their position during his (possible) second term – but Beijing's actions indicate that the Chinese are not ready to conclude a deliberately losing party for themselves. In this context, the G20 will be a significant event. A meeting of the leaders of the United States and China can take place on the "fields" of the G-20 summit, which will be held in late June – at least, the head of the White House National Economic Council Larry Kudlow did not rule out this possibility. If the de facto parties for any reason avoid in-person dialogue, the prospects for trade negotiations will indeed be in big question.

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Brexit also exerts pressure on the euro: today, it became known that the negotiations between the May government and the Labor Party finally failed. The parties put an end to the month-and-a-half dialogue and returned to mutual accusations of a political nature. Theresa May expressed confidence that the Conservative Party will be able to bring the Brexit process to its logical conclusion, while the Labor Party said that the current composition of the Cabinet of Ministers is similar to Titanic in the last moments before the collision with the iceberg. In other words, the situation with Brexit returned to zero, bringing down the pound and pulling the euro.

The rhetoric of Italian politicians also puts pressure on the single currency. Just today, Italian Deputy Prime Minister Salvini said that the Italian government "wants to change the EU banking rules." He also noted that, in his opinion, such a structure as the European Union was created exclusively to defend German interests, including economic ones. But in this case, I would not jump to conclusions about the prospects of the conflict between Rome and Brussels: it is likely that after the elections to the European Parliament, the position of Italian politicians will significantly soften.

Despite this negative array, the bears of the EUR/USD pair failed to overcome the key support level of 1.1130 (the lower line of the Bollinger Bands indicator on the daily chart) to enter the 10th figure. To help the bulls of the pair came, oddly enough, Trump, who decided to postpone for up to 6 months the decision to impose duties on imports of European cars and spare parts. Now, this information has acquired the shape of the official notification of the White House, and this fact helped buyers of EUR/USD to return to the mark of 1.1180. Nevertheless, the fundamental background for the pair still remains negative, so the bears retain the potential for a further decline to the above support level.

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Who seeks to take the place of May?

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Theresa May will sooner or later leave her Prime Minister's chair, and this is already perceived as a fact. The interest now is something else: when will this happen and who will replace May.

As is known, the current British Prime Minister has extended her time until the beginning of June. Another parliamentary vote on Brexit is scheduled for this period. The government expects to approve the deal and withdraw from the EU before the end of July. However, there is no certainty that an agreement three times rejected by Parliament will be adopted this time. It is rumored that May will resign before the expected time, and regardless of whether the vote on the Brexit bill passes in the first week of June or not.

Now, one thing is very clear – this summer, the elections of the leader will be held. Ex-foreign minister and member of the Conservative Party, Boris Johnson, has already confirmed that he is in action.

It should be noted that the Labor Party stopped negotiations with the Theresa May government since they no longer have incentives and reasons for meetings. Jeremy Corbyn said that the parties discussed everything that could be discussed. Besides, May is now mostly bankrupt for them.

This topic has made the British pound the main outsider this week. In five days, the loss was 1.6%. The strongest decline in sterling was recorded on Thursday when the GBP/USD pair fell to the lowest level in three months. On Friday, the downward movement continued – the pound passed the four-month milestone.

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Investors are upset by the events surrounding Brexit, as well as the aggravation of the trade conflict between the US and China. Both of these factors are equally detrimental to the national currency of Great Britain.

China and the USA

Tensions between the two largest economies in the world increased after the White House virtually blocked Huawei and other Chinese companies from accessing the US market. In response, Beijing promised countermeasures and recalled that it would never make concessions on important issues of principle.

Representatives of Huawei, in turn, said that US restrictions would lead the country to stay outside of 5G and that they would interact with the US government regarding product safety. They also announced their desire to maintain "close relations" with European countries and carriers.

Donald Trump urged colleagues from Europe to follow the path of America – to ban Huawei in their markets, but they have not done it yet. I must say that Beijing and Washington are already moving on thin ice, and the situation with Huawei – if it increases significantly – can become a turning point that will lead to the collapse. Even if this does not happen, the tension will still increase, as the fire seems to have flared up.

So, unexpectedly tough rhetoric was chosen by the state media of China, commenting on the course of trade negotiations. The WeChat blog on behalf of the Taoran Notes account, owned by the state publication Economic Daily, said that it was meaningless for Chinese officials to meet with the US delegations without their sincere desire to sign a trade agreement.

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EUR/USD. May 17. Results of the day. Inflation in the eurozone is not interested in foreign exchange market participants

4-hour timeframe

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The amplitude of the last 5 days (high-low): 41p – 42p – 43p – 47p – 58p.

The average amplitude over the last 5 days: 46p (50p).

The main indicator of the consumer price index in the eurozone for April was fully consistent with the forecasts of experts and amounted to +1.7% in annual terms and +0.7% in monthly terms. Only the basic consumer price index was higher than market expectations and amounted to +1.3% y/y. However, as we can see, this rather important report did not bring any changes to the current trend. The euro is still prone to fall, and the reaction to today's inflation report from traders was not even followed. Thus, we continue to draw the attention of traders to the fact that now in the first place are clearly technical factors. Namely: the non-renewal of the previous local maximum, frankly a downward trend in 2019, and the weakness of the bulls. If we add to this the absence of a positive fundamental background from Europe, it becomes clear that the path of the euro is one – to the South. Just moving down the pair will not be as fast and zealous as the pound. Now, we expect the EUR/USD pair to decline to 1.1100, but most likely the pair will go below this level. In a few hours, the US will publish a fairly important index of consumer confidence of the University of Michigan. It is expected that the value for May will exceed April. Thus, at the US session on Friday, May 17, the US dollar may receive additional support. The volatility of the instrument remains low. The downward movement is not recoilless, therefore, intraday positions are not entirely rational. The best time of deals for the pair is now 2-3 days. During this time, the pair can pass at least 70-100 points.

Trading recommendations:

The pair EUR/USD resumed its downward movement. Therefore, it is still recommended to consider sell positions with the targets at 1.1131 and 1.1118 and before the MACD indicator turns upwards.

It will be possible to return to buy positions if traders manage to consolidate back above the critical line. In this case, the first target for the long positions will be the resistance level of 1.1268.

In addition to the technical picture should also take into account the fundamental data and the time of their release.

Explanation of illustration:

Ichimoku Indicator:

Tenkan-Sen – red line.

Kijun-Sen – blue line.

Senkou Span A – light brown dotted line.

Senkou Span B – light purple dotted line.

Chinkou Span – green line.

Bollinger Bands Indicator:

3 yellow lines.

MACD:

A red line and a histogram with white bars in the indicator window.

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The dollar has a risk appetite

Looking at how the US stock market in May first collapsed and then began to recover under the influence of Donald Trump's tweets, you make sure that it becomes a toy in the hands of the US President. A statement on the introduction of duties on all Chinese imports sent the S&P 500 to a knockdown, but the stock index managed to recover and mark a three-day rally after it was announced that the deal with China would be concluded earlier than people assumed. The most interesting thing is that the US dollar fell due to the escalation of the trade conflict, and then grew due to the optimism of Donald Trump. It behaves as a risky asset, although it is usually referred to as a safe haven currency. What is it?

While the rates on 10-year US Treasury bonds are 2.4%, and on German and Japanese analogs are negative in conditions of high-risk appetite and historically low volatility, the carry trade strategy with the participation of EUR/USD and USD/JPY begins to flourish. Players on the difference borrow money in countries with low borrowing costs and invest them in profitable assets. Thanks to the Fed's desire to keep the Federal funds rate at 2.5% for an infinitely long time and the belief in the imminent end of the trade war between Washington and Beijing, carry-traders felt like a fish in the water, but Donald Trump's tweets turned everything upside down. Funding currencies represented by the euro and the yen began to be in high demand, and stock indices pulled the USD index down.

Dynamics of Dow Jones and US Dollars

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The "bears" on USD/JPY felt more confident than "bulls" on EUR/USD, due to the aggravation of political problems in the Old World. Not only that the chances of the resignation of Theresa May from the post of British Prime Minister increased significantly, which drowned the pound, but also the elections to the European Parliament decided to remind themselves of the Italian populists. Vice Prime Minister Salvini said he would lift the EU's tough requirements of a 3% budget deficit from GDP, and let Brussels do what it wants. The exacerbation of political risks is a negative factor for the euro, and as the elections approach, they will increase.

From the point of view, the key event for EUR/USD in the week to May 24 will be the release of data on business activity in Germany and the eurozone in May. Participating in Markit's survey, procurement managers already knew about the escalation of the US-Chinese trade conflict so the statistics can be disappointing, which will create the preconditions for the continuation of the southern hike of the main currency pair. To support the euro, the correction in world stock markets is needed. In this situation, the demand for funding currencies will increase.

Technically, a breakthrough of support at 1.1135 on the daily EUR/USD chart will increase the risks of target implementation by 161.8% using the AB = CD pattern. It corresponds to a mark of 1.1. In order to maintain hope for the activation of the "Wolfe Waves" reversal pattern and the fulfillment of its targets, the "bulls" should return quotes above 1.127.

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Bitcoin analysis for May 17, 2019

BTC has been trading downwards as we expected. The price tested the level of $6.955. We still expect downside.

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Both of your yesterday's targets at $7.607 and $7.418 were met. We found strong reaction from sellers and strong drop on BTC. Most recently, there is the potential bearish flag in creation, which is sign that we should see more downside. The ADX is reading is above 30 and increasing, which is signal that down momentum is strong. Watch for selling opportunities on the rallies.

Downwards references are set:

$6.836

$6.500

Upward references are set:

$7.347

$8.316

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May 17, 2019 : GBP/USD Intraday technical analysis and trade recommendations.

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On March 29, the price levels of 1.2980 (the lower limit of the newly-established bearish movement channel) demonstrated significant bullish rejection.

This brought the GBPUSD pair again towards the price zone of (1.3160-1.3180) where the upper limit of the depicted bearish channel was located.

Since then, Short-term outlook has turned into bearish with intermediate-term bearish targets projected towards 1.2900 and 1.2850.

On April 26, a bullish pullback was executed towards the price levels around 1.3000 (the bottom of March 29) where temporary bullish breakout was temporarily executed until May 13 when evident bearish rejection was demonstrated.

Hence, a bearish Head and Shoulders pattern was expressed on the H4 chart with neckline located around 1.2980.

That's why, the price zone of 1.3030-1.3060 turned to become a prominent supply-zone where a valid bearish entry was offered by the end of last week's consolidations.

Bearish persistence below 1.2980 (Neckline of the reversal pattern) enhanced further bearish decline.

Initial bearish Targets were already reached around 1.2900-1.2870 (the backside of the broken channel) which failed to provide any bullish support for the GBPUSD pair.

Currently, The GBPUSD pair looks oversold around the current price levels (1.2730). However, no signs of bullish recovery have been manifested yet.

Trade Recommendations:

For those who had a valid SELL entry around the price levels of (1.3035-1.3070). It's already running in profits. S/L should be lowered to 1.2780 to secure more profits.

Conservative traders should wait for another bullish pullback towards 1.2870-1.2905 (newly-established supply zone) to look for valid sell entries. S/L should be placed above 1.2950.

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Analysis of Gold for May 17, 2019

Gold has been trading downwards as we expected. The price tested the level of $1.275. We still expecting more downside.

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According to the 4H time-frame, we found that there is the breakout of the upward trendline (green line), which is sign that sellers are in control. We also found potential completion of the ABC upward correction, which adds even more weakness on the Gold. Our advice is to watch for potential bear flag in order to build more short positions.

Downwards reference is set:

$1.266

Upward references are set:

Swing high – $1.288

Major high – $1.302

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Fractal analysis of major currency pairs on May 17

Hello, dear colleagues.

For the currency pair Euro/Dollar, the continuation of the main downward trend is expected after the breakdown of 1.144. For the currency pair Pound/Dollar, the continuation of the downward movement is expected after the breakdown of the level of 1.2733 and the movement to the top is considered as a correction. For the currency pair Dollar/Franc, we follow the formation of the upward cycle from May 13 and the subsequent development is expected after the breakdown of 1.0113. For the currency pair Dollar/Yen, we follow the formation of the upward cycle from May 13 and we expect the development of this structure after the breakdown of 109.95. For the Euro/Yen, the continuation of the downward movement of May 10 is expected after the breakdown of 122.12. For the currency pair Pound/Yen, the subsequent development of the local structure from May 10 is expected after the breakdown of 139.65 and we consider the upward movement as a correction.

Forecast for May 17:

Analytical review of H1-scale currency pairs:

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For the currency pair Euro/Dollar, the key levels on the H1 scale are 1.1222, 1.1212, 1.1197, 1.1184, 1.1156, 1.1144 and 1.1112. We continue to follow the development of the downward structure of May 13. The short-term downward movement is expected in the range of 1.1156 – 1.1144 and the breakdown of the last value should be accompanied by a pronounced downward movement. In this case, the potential target is 1.1112 and we expect a rollback to the top from this level.

The short-term upward movement is possible in the range of 1.1184 – 1.1197 and the breakdown of the latter value will lead to a prolonged correction. The target is 1.1212 and the range of 1.1212 – 1.1222 is the key support for the downward movement. We expect the initial conditions for the upward cycle.

The main trend is the downward structure of May 13.

Trading recommendations:

Buy 1.1184 Take profit: 1.1195

Buy 1.1198 Take profit: 1.1210

Sell: 1.1156 Take profit: 1.1145

Sell: 1.1142 Take profit: 1.1116

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For the currency pair Pound/Dollar, the key levels on the H1 scale are 1.2840, 1.2802, 1.2773, 1.2733, 1.2693, 1.2659 and 1.2588. We continue to follow the development of the downward structure from May 3 and the continuation of the downward movement is expected after the breakdown of the level of 1.2733. In this case, the target is 1.2693 and in the area of 1.2693 – 1.2659 is the consolidation. The breakdown of the level of 1.2659 will lead to a movement to the potential target of 1.2588, upon reaching which, we expect a rollback to the top.

The short-term upward movement is possible in the area of 1.2773 – 1.2802 and the breakdown of the latter value will lead to a prolonged correction. The target is 1.2840 and this level is the key support for the downward structure.

The main trend is the downward cycle of May 3.

Trading recommendations:

Buy: 1.2773 Take profit: 1.2802

Buy: 1.2804 Take profit: 1.2840

Sell: 1.2732 Take profit: 1.2694

Sell: 1.2656 Take profit: 1.2590

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For the currency pair Dollar/Franc, the key levels on the H1 scale are 1.0160, 1.0142, 1.0131, 1.0113, 1.0084, 1.0072 and 1.0048. We follow the formation of the upward structure of May 13. The continuation of the upward movement is expected after the breakdown of 1.0113. In this case, the target is 1.0131 and in the area of 1.0131 – 1.0142 is the short-term upward movement, as well as consolidation. We consider the level of 1.0160 as a potential value for the top, after reaching which, we expect a rollback to the bottom.

The short-term downward movement is possible in the area of 1.0084 – 1.0072 and the breakdown of the latter value will have to develop the downward structure. The potential target is 1.0048, up to this level, we expect the initial conditions for the downward cycle.

The main trend is the upward structure of May 13.

Trading recommendations:

Buy: 1.0113 Take profit: 1.0130

Buy: 1.0142 Take profit: 1.0160

Sell: 1.0084 Take profit: 1.0073

Sell: 1.0070 Take profit: 1.0050

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For the currency pair Dollar/Yen, the key levels on the H1 scale are 110.81, 110.54, 110.33, 109.95, 109.80, 109.38, 109.24, 109.01 and 108.77. We follow the formation of the upward cycle of May 13. The continuation of the upward movement is expected after the price passes the range of 109.80 – 109.95. In this case, the goal is 110.33 and in the area of 110.33 – 110.54 is the short-term upward movement, as well as consolidation. We consider the level of 110.81 as a potential value for the top, after reaching which, we expect a rollback to the bottom.

The range of 109.38 – 109.24 is the key support for the upward structure of May 13. Its price passage will have to develop the downward structure. The first target is 109.01. We consider the level of 108.77 as a potential value for the bottom, to which we expect the registration of the expressed initial conditions for the downward cycle.

The main trend is the upward structure of May 13.

Trading recommendations:

Buy: 109.95 Take profit: 110.33

Buy: 110.55 Take profit: 110.80

Sell: 109.24 Take profit: 109.02

Sell: 109.00 Take profit: 108.78

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For the currency pair Canadian Dollar/Dollar, the key levels on the H1 scale are 1.3568, 1.3526, 1.3511, 1.3493, 1.3451, 1.3434, 1.3415 and 1.3378. We follow the formation of the upward structure of May 10. The continuation of the upward movement is expected after the breakdown of 1.3493. In this case, the target is 1.3511 and consolidation is near this level. The price pass of the range of 1.3511 – 1.3526 should be accompanied by a pronounced upward movement to the potential target of 1.3568, from this level, we expect a rollback to the bottom.

The consolidated movement is possible in the area of 1.3451 – 1.3434 and the breakdown of the last value will lead to a prolonged correction. The target is 1.3415 and this level is the key support for the top.

The main trend is the formation of the upward structure of May 10, the stage of initial conditions.

Trading recommendations:

Buy: 1.3493 Take profit: 1.3510

Buy: 1.3526 Take profit: 1.3566

Sell: 1.3433 Take profit: 1.3417

Sell: 1.3412 Take profit: 1.3385

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For the currency pair Australian Dollar/Dollar, the key levels on the H1 scale are 0.6936, 0.6916, 0.6900, 0.6869, 0.6854 and 0.6835. We follow the development of the downward structure of May 7. The short-term downward movement is expected in the range of 0.6869 – 0.6854, hence there is a high probability of a turn into a correction. We consider the level of 0.6835 as a potential value for the downward trend, the movement to which is expected after the breakdown of 0.6852.

The short-term upward movement is possible in the range of 0.6900 – 0.6916 and the breakdown of the latter value will lead to a prolonged movement. The goal is 0.6936 and this level is the key support for the downward structure.

The main trend is the downward structure of May 7.

Trading recommendations:

Buy: 0.6900 Take profit: 0.6914

Buy: 0.6917 Take profit: 0.6934

Sell: 0.6867 Take profit: 0.6855

Sell: 0.6852 Take profit: 0.6836

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For the currency pair Euro/Yen, the key levels on the H1 scale are 122.95, 122.68, 122.50, 122.12, 121.75, 121.45 and 121.09. We follow the development of the local structure for the bottom of May 10. The continuation of the downward movement is expected after the breakdown of the level of 122.12. In this case, the goal is 121.75 and in the area of 121.75 – 121.45 is the short-term downward movement, as well as consolidation. Also, from this range, there is a high probability of rollback to the correction. We consider the level of 121.09 as a potential value for the bottom, upon reaching which, we expect a rollback to the top.

The short-term upward movement is expected in the area of 122.50 – 122.68 and the breakdown of the last value will lead to a prolonged correction. In this case, the goal is 122.95.

The main trend is the local downward structure of May 10.

Trading recommendations:

Buy: 122.50 Take profit: 122.66

Buy: 122.70 Take profit: 122.95

Sell: 122.12 Take profit: 121.75

Sell: 121.73 Take profit: 121.45

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For the currency pair Pound/Yen, the key levels on the H1 scale are 141.05, 140.45, 140.09, 139.68, 139.15, 138.45 and 138.03. We follow the development of the downward structure of May 10th. The continuation of the downward movement is expected after the breakdown of 139.65. In this case, the goal is 139.15 and consolidation is near this level. The breakdown of the level of 139.15 will lead to a pronounced movement to the level of 138.45 and from this level, there is a high probability of a turn to the top. The potential value for the bottom is considered the level of 138.03, upon reaching which, we expect consolidation in the area of 138.45 – 138.03, as well as a rollback to the top.

The short-term upward movement is possible in the area of 140.09 – 140.45 and the breakdown of the latter value will lead to a deep correction. The target is 141.05 and this level is the key support.

The main trend is the local downward structure of May 10.

Trading recommendations:

Buy: 140.10 Take profit: 140.45

Buy: 140.47 Take profit: 141.05

Sell: 139.66 Take profit: 139.15

Sell: 139.10 Take profit: 138.45

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