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18.05.202010:40 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on May 18

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Economic calendar (Universal time)

The economic calendar today contains few statistics, important events during the day are not expected.

EUR / USD

Exchange Rates 18.05.2020 analysis

The last day of last week did not bring any changes; as a result, the pair remained within the existing consolidation. From above, this movement is limited by the resistance of the final levels of the daily cross (1.0873 - 1.0907), strengthened today by the weekly Tenkan (1.0893), from below everything rests on the support of the historical level of 1.0778. In case of exit from this zone, the downward targets of 1.0727 - 1.0636 (minimum extrema + trend line) are still relevant for the players to decline. In turn, bullish interests so far also remain in their places and retain their previous value - 1.0965 (weekly Fibo Kijun) and 1.1067 - 88 (accumulation of upper times).

Exchange Rates 18.05.2020 analysis

In this situation, daily consolidation determines the fate of the movement in the lower halves. Based on the borderline benchmarks of consolidation, the pair swirls around the key levels of the lower halves, which are now united in the area of 1.0820 - 22 (the Central Pivot level + the weekly long-term trend) and, taking a horizontal position , form the center of gravity of this movement. Working above levels increases the chances of the players being promoted. The resistance within the day is the classic Pivot levels located today on the 1.0850 - 1.0882 - 1.0912. Price consolidation below (1.0820 - 22) gives hope to the players for a decline, the downward guidance on H1 for them today can be noted on 1.0788 - 1.0758 - 1.0726.

GBP / USD

Exchange Rates 18.05.2020 analysis

On the last day of the week, the players to increase showed good activity, confirming the bearish nature of the weekly movement. At the moment, the pair is in the zone of influence of the weekly short-term trend (1.2047), historical support 1.1970 is located a little lower. A breakdown of the trend and reliable consolidating below the indicated supports will help to continue the decline. The formation of the rebound from the met supports can slow down and change the situation. The levels passed last week form resistance now, the nearest 1.2214 (weekly Fibo Kijun) - 1.2305 (daily cloud + cross).

Exchange Rates 18.05.2020 analysis

At the moment, on H1, the pair is in the upward correction zone, while technical indicators have already managed to tune in to the development of correction. The main correction targets today are located at 1.2146 (central Pivot level) and 1.2239 (weekly long - term trend). In the case of completion of correction and restoration of a downward trend, the bears will expect support for the classic pivot levels at 1.2053 - 1.2006 - 1.1913.

Ichimoku Kinko Hyo (9.26.52), Pivot Points (classic), Moving Average (120)

Evangelos Poulakis
Analytical expert of InstaForex
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