22.05.201704:21 Forex Analysis & Reviews: Daily analysis of major pairs for May 22, 2017

Long-term review

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EUR/USD: This currency pair gained 290 pips last week, closing slightly above the support line at 1.1200. This week, the price may target the resistance lines at 1.1250, 1.1300 and 1.1350. Some EUR pairs would trend higher, while some would trend lower this week. However, EUR/USD is supposed to move higher.

USD/CHF: This currency trading instrument lost 270 pips last week, closing below the resistance level at 0.9750. The price has lost 340 pips since May 12 – something that has resulted in a strong Bearish Confirmation Pattern in the market. The outlook on the USD/CHF remains bearish for this week, and further southwards movement would be witnessed as the support levels at 0.9700, 0.9650 and 0.9600 are being tested.

GBP/USD: This pair consolidated in the first few days of the last week. Then it trended upwards to emphasize the recent bullish outlook on the market. The price is now above the accumulation territory at 1.3000, going towards the distribution territory at 1.3050, which should be breached this week as the price rallies more and more.

USD/JPY: This pair experienced a major pullback last week. In the first few days of the week, the price lost about 300 pips, before consolidating in the first few days of last week. There is a bearish outlook on the market, and it will remain valid as long as the price does not go above the supply level at 114.00 (which would, however, require extraordinary buying pressure).

EUR/JPY: This cross pair went upwards on Monday and Tuesday, but retreated on Wednesday and Thursday, and then moved up again on Friday. Unlike its USD/JPY counterpart, the EUR/JPY cross has not gotten bearish, and one factor helping the situation is a measure of strength in the EUR itself. The price could gain additional 200 pips this week, especially if the yen becomes weak.

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