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20.05.202212:28 Forex Analysis & Reviews: Technical analysis recommendations on EUR/USD and GBP/USD for May 20, 2022

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EUR/USD

Exchange Rates 20.05.2022 analysis

Higher timeframes

Yesterday bears failed to confirm and continue the decline that began on Wednesday. As a result, the bulls returned to the market and updated the top, leveling all the achievements of the bears. Now the resistance of the daily Fibo Kijun (1.0573) is being tested, and the final levels of the daily death cross 1.0642 and 1.0712 serve as reference points. It should be noted that the monthly level of 1.0539, which was the center of consolidation not so long ago, still exerts its influence on the course of events. Perhaps even now this level will be able to turn the current movement into consolidation and uncertainty.

Exchange Rates 20.05.2022 analysis

H4 - H1

The weekly long-term trend yesterday managed to defend the interests of the bulls, so today, the main advantage in the lower timeframes continues to be on the side of the bulls. The upward reference points within the day are the resistance of the classic pivot points (1.0642 – 1.0698 – 1.0789), plus the target for the breakdown of the H4 cloud (1.0617 – 1.0647). Key levels are forming support today, located at 1.0551 (central pivot point of the day) and 1.0486 (long-term weekly trend). Consolidation below will change the current balance of power.

***

GBP/USD

Exchange Rates 20.05.2022 analysis

Higher timeframes

The decline was stopped yesterday. Bulls are trying to recover positions lost on Wednesday and continue the upward correction. Ahead is the resistance of the daily Fibo Kijun (1.2512), and then a strengthened resistance zone, which unites the resistance levels of various timeframes (1.2622 – 1.2764). The daily short-term trend (1.2340) continues to provide current support.

Exchange Rates 20.05.2022 analysis

H4 - H1

Even though the pair is in the zone of corrective decline, the main advantage now belongs to bulls. Among the reference points for the continuation of the rise today, we can note the resistance of the classic pivot points (1.2546 – 1.2630 – 1.2735) and the target for the breakdown of the Ichimoku cloud on H4 (1.2598 – 1.2647). The key levels of the lower timeframes are now acting as supports, protecting the interests of bulls today at 1.2441 (the central pivot point) and 1.2373 (the weekly long-term trend). Consolidation below can change the current balance of power and restore relevance to the support of the classic pivot points (1.2357 – 1.2252 – 1.2168).

***

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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