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16.05.202213:56 Forex Analysis & Reviews: Technical analysis recommendations on EUR/USD and GBP/USD for May 16, 2022

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EUR/USD

Exchange Rates 16.05.2022 analysis

Higher timeframes

The pair ended last week with a slight slowdown, entering the zone of attraction and influence of the 2017 main bottom at 1.0339. Overcoming this support will allow further decline. In this case, the next possible reference point may be the psychological level of 1.0000. If bulls go beyond slowing down and manage to implement a full-fledged upward correction, then the first task for them will be to eliminate the daily death cross. The daily cross levels are now forming a rather wide resistance zone 1.0495 – 1.0573 – 1.0642 – 1.0712.

Exchange Rates 16.05.2022 analysis

H4 - H1

The slowdown on the higher timeframes is a corrective movement on the lower timeframes. On H1, bulls have taken over the central pivot point of the day (1.0394). As a result, the next target is now at 1.0482 (the weekly long-term trend). Consolidation above will change the current balance of power. After that, it will be better to re-evaluate the situation. If the corrective rise is completed and the bears regain the central pivot point (1.0394), then the attention within the day will shift to passing the supports of the classic pivot points 1.0368 – 1.0323 – 1.0297.

***

GBP/USD

Exchange Rates 16.05.2022 analysis

Higher timeframes

At the close of last week, the pound marked a new low, but it was not possible to keep the situation. The lower shadow of the weekly candle is ultimately lacking in optimism. In the current situation, the line of psychological support at 1.2000 continues to be a downward benchmark. The nearest resistances in case of development of correction are the levels of daily Ichimoku cross 1.2396 (short-term trend) and 1.2534 (Fibo Kijun).

Exchange Rates 16.05.2022 analysis

H4 - H1

At the moment, on the lower timeframes, there is a struggle for the possession of key levels, which today can be noted at 1.2225 (the central pivot point of the day) and 1.2271 (the weekly long-term trend). The possession of these levels and the reversal of the moving average will change the current balance of power. Upward targets within the day today are located at 1.2296 – 1.2331 – 1.2402 (resistance of the classic pivot points). Downside targets are at 1.2190 – 1.2119 – 1.2084 (support of the classic pivot points).

***

In the technical analysis of the situation, the following are used:

higher timeframes – Ichimoku Kinko Hyo (9.26.52) + Fibo Kijun levels

H1 - Pivot Points (classic) + Moving Average 120 (weekly long-term trend)

Evangelos Poulakis
Analytical expert of InstaForex
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