17.05.202113:45 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 17, 2021

EUR/USD

Bulls returned below the April high (1.2150) at the close of the previous week. A consolidation above the April high (1.2150) and the May results (1.2182) will return the bullish opportunities and prospects. In this case, the next pivot points will be the maximum extremes, which will allow us to restore the upward trend (1.2243 and 1.2349) in the higher time frames, and the upward target for the breakdown of the daily Ichimoku cloud (1.2345 - 1.2416). If the bulls fail to implement the continuation of growth, the pair will be forced again to interact with the support levels of various time frames, which currently form a quite wide zone – 1.2102 - 1.2027 - 1.1977 - 1.1943.

Currently, the euro is declining on the hourly TF. The nearest pivot points for the decline is set in the area of 1.2120, where the key levels such as the central pivot level and the weekly long-term trend combine their efforts. A consolidation below these levels will form preferences to strengthen bearish sentiment. Today, the next support levels are located at 1.2093 - 1.2044 - 1.2016.

In turn, a movement above the area of 1.2120 will keep the advantage to the side of the bulls. The bullish intraday targets are the resistances of the classic pivot levels seen at 1.2170 - 1.2198 - 1.2247.

GBP/USD

The historical level of 1.4008 helped the pair return to the target area for the breakdown of the daily cloud (1.4090 - 1.4137). The breakdown of the resistances will open the way to the current maximum extremum (1.4240). At the same time, the main task of the bulls will be to restore the upward trend (1.4240 week + month) and consolidate in the bullish zone relative to the bearish monthly cloud, followed by the formation of an upward target for the breakdown of the cloud.

The support levels in the current situation retain their location. We can note the nearest ones at 1.4008 (historical level + daily short-term trend) - 1.3958 (upper limit of the monthly cloud) - 1.3918 (weekly short-term trend + daily medium-term trend).

The smaller time frames cannot decide which of the traders in the market will own the support for the weekly long-term trend. The struggle for this level has been going on for three consecutive days. Today, the key H1 levels united in the area of 1.4080-94 (weekly long-term trend + central pivot level). The breakdown of these levels and working on them will strengthen the bullish advantages, allowing them to implement new plans.

The resistances of the classic pivot levels are set at 1.4125 - 1.4155 - 1.4200. A consolidation below the levels of 1.4080-94 and breakdown of their attraction will most likely lead to further strengthening of bearish sentiment. In this case, the supports of the classic pivot levels at 1.4050 - 1.4005 - 1.3975 can be considered.

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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) on the H1 chart are used in the technical analysis of the trading instruments.