Technical analysis for EUR/USD and GBP/USD for May 4, 2021



Yesterday, bulls returned the price to the resistance level of 1.2072 of the daily short-term trend. Today, however, the market is under the control of bears, and the price has already surpassed the low of the previous week. The weekly mid-term trend provides support at the level of 1.2027. In case of a breakout at this level, the price may approach the wide support zone of 1.2003 - 1.1977 - 1.1947 - 1.1927 in the higher time frames.


Yesterday, the price rose to the zone of key levels in the lower time frames that served as resistance. Today, the resistance levels are at 1.2080 (the weekly long-term trend) and 1.2051 (the central Pivot level). The price hit a new low. If the bearish trend goes on, the intraday targets will be at 1.988 and 1.963, the classic Pivot levels.




The strong support zone of 1.3842-06 prevented the price from falling further yesterday. The pair has returned to the area of the daily Cloud and keeps consolidating below the resistance level of 1.3958 (the upper border of the monthly Cloud). In case of a breakout and consolidation in the bull zone, bullish sentiment may increase.


According to the lower time frames, there is a balance of power in the market. The pair is in the zone of 1,3879-99 (the central Pivot level and the weekly long-term trend). Bearish sentiment may increase if the price goes below these key levels. In this case, the intraday targets are seen at 1.3827 - 1.3748 - 1.3696 (classic Pivot levels). Alternatively, if the price consolidates above 1.3879-99 and rises further, bullish sentiment may grow. Then, the intraday targets will be at 1.3958 (R1), 1.4010 (R2), and 1.4089 (R3).


Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average 120 (the weekly long-term trend) on the H1 chart are used in technical analysis.

The material has been provided by InstaForex Company -