21.05.202113:30 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 21, 2021

EUR/USD

Yesterday, the bulls were able to neutralize all the efforts of their opponent and returned the euro below the resistance level of 1.2243. The breakdown of this level will direct all market's attention to the upward target for the breakdown of the daily Ichimoku cloud (1.2345 - 1.2416), strengthened by the maximum extreme (1.2349). Today, the nearest support levels maintained their location and value at 1.2150-48 (daily short-term trend + historical level) - 1.2102 - 1.2094 (daily medium-term trend + weekly level). The nearest support is set at 1.2130 (daily Fibo Kijun).

The bulls also regained the central pivot level and due to this, they organized a rise below the high of the current movement (1.2245), raising the question of restoring the upward trend. We can note the intraday upward pivot points at 1.2248 - 1.2268 - 1.2308 (resistance of the classic pivot levels). Currently, the bulls took a break again, and a correctional movement is being observed.

Today's key levels in the smaller time frames will defend the bullish interests at the borders of 1.2208 (central pivot level) and 1.2186 (weekly long-term trend). The breakdown of which, followed by a consolidation, will affect the balance of power in the lower period, giving preference to strengthen the bullish mood on the hourly TF. The following support for the classic pivot levels are seen at 1.2148 (S2) - 1.2128 (S3), which combined their efforts with the support (1.2150-48) in the higher time frames.

GBP/USD

The bearish sentiment during the previous day was replaced by bullish activity again. As a result, the bulls consider the possibility of lifting to the maximum extreme (1.4240), testing it and breaking through it. The nearest support zone is now formed by the attraction and influence of the daily target levels on the breakdown of the Ichimoku cloud (1.4137 - 1.4090), as well as the daily short-term trend (1.4112), which has risen to this area to strengthen support.

The support for the weekly long-term trend endured the task again and allowed the bulls to maintain their main advantage. Although the pair currently remains in the correction zone, the support for all analyzed technical instruments belongs to bullish traders. The pivot points are the resistance of the classic pivot levels (1.4219 - 1.4252 - 1.4311).

In turn, the key levels in the smaller time frames are forming support in the area of 1.4160-45 (central Pivot level + weekly long-term trend) today. A sharp consolidation below it and a reversal of moving averages can change the current balance of forces. The supports of the classic pivot levels are located at 1.4127 - 1.4068 - 1.4035.

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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.