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Technical Checks For EUR/USD, USD/JPY, AUD/USD & NZD/USD: 22.05.2018

By:
Anil Panchal
Updated: May 22, 2018, 13:48 UTC

EUR/USD Even after bouncing off the 1.1710-15 horizontal-support, the EURUSD needs to conquer a month-old descending trend-line, at 1.1875 now, on a daily

Technical Checks For EUR/USD, USD/JPY, AUD/USD & NZD/USD: 22.05.2018

EUR/USD

Even after bouncing off the 1.1710-15 horizontal-support, the EURUSD needs to conquer a month-old descending trend-line, at 1.1875 now, on a daily closing basis in order to justify its latest strength. Should prices manage to surpass the 1.1875 beyond D1 close, the 1.1900 round-figure, the 1.1940 and the 1.2000 psychological magnet could lure the buyers ahead of challenging them with the 200-day SMA level of 1.2020. In case the pair fails to cross the 1.1875, the 1.1750 can act as immediate support before highlighting the 1.1715-10 rest-zone again. Also, if at all the quote drops below 1.1710, the 1.1660 and the 1.1600 can offer intermediate halts earlier than dragging it to the 1.1550 support.

USD/JPY

While an upward slanting trend-channel stretched since early-April aptly portrays the USDJPY’s north-run, overbought RSI is something that presently seems fetching the pair to 110.65 but the resistance-turned-support, at 110.25, adjacent to the 200-day SMA level of 110.15, could question the sellers then after. Given the pair’s inability to hold the 110.15 support, lower-line of the aforementioned channel, near 109.80, might try disappointing the Bears, if not then the 109.00 and the 108.60 can mark their presence on the chart. Alternatively, the 111.75, comprising channel-resistance, and the 112.00 horizontal-line might restrict nearby upside of the pair, breaking which the 112.40, the 112.70 and the 113.00 could gain traders’ attention. Assuming the pair’s sustained trading beyond 113.00, the 113.70 & the 114.30 might please the optimists.

AUD/USD

AUDUSD’s U-turn from ten-month long descending trend-line might soon confront short-term crucial resistance-region, around 0.7640-50, including 50-day SMA, clearing which the 0.7670 could become a buffer prior to raising the importance of 0.7690 resistance-line. Should the pair successfully trades above 0.7690, also crosses the 0.7700 round-figure, the 0.7750 & the 0.7810 may gain the lime-light. Meanwhile, the 0.7560, the 0.7515 and the 0.7470 can provide immediate supports to the pair before rejuvenating chance of witnessing its drop to the 0.7420 trend-line. In case the traders refrains to respect 0.7420, the 0.7400, the 0.7365 and the 0.7325 may sound Bears’ favorites.

NZD/USD

With the overbought RSI dragging the NZDUSD back from its recent highs even after breaking a month-old descending trend-line, the pair may re-test resistance-turned-support, at 0.6925, whereas failure to bounce from the same might not hesitate registering 0.6900 as a level. However, an upward slanting TL, at 6885, can confine the pair’s downside below 0.6900. Given the pair’s dip beneath the 0.6885, the 0.6870, the 0.6850 and the 61.8% FE level of 0.6820 could please the pessimists. On the upside, the 0.7000 horizontal-line and the 0.7030 are likely adjacent barriers for the pair, breaking which the 0.7055, the 0.7100 and the 0.7130 may flash in buyers’ radars. Moreover, pair’s rise above 0.7130 can aim for the 0.7200 resistance-level.

Cheers and Safe Trading,
Anil Panchal

About the Author

An MBA (Finance) degree holder with more than five years of experience in tracking the global Forex market. His expertise lies in fundamental analysis but he does not give up on technical aspects in order to identify profitable trade opportunities.

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