Technical Analysis for Major Currencies

EURO

After breaching the minor resistance at 1.3945, The Euro versus Dollar pair was able to touch 14050 last Friday before reversing back to the downside to trade near the 1.4000 level. A downside correction may be witnessed to as far as 1.3740 before rebounding back to the upside towards 1.4140 – 1.4180. The upside direction remains as far as 1.3740 is intact.

The trading range for today is among the key support at 1.3580 and the key resistance at 1.4380

The general trend is to the downside as far as 1.4710 remains intact with targets at 1.2120

Support: 1.3970, 1.3850, 1.3780, 1.3740, 1.3705
Resistance: 1.4050, 1.4115, 1.4140, 1.4215, 1.4300

Recommendation: According to our analysis, sell the pair below 1.3970 with targets at 1.3850 and stop loss with four hour closing above 1.4050

GBP

The Cable continued to trade between the resistance level for the ascending channel between 1.5880 and 1.5915 as it attempts to close above this level to continue the incline. We expect to witness a downside correction to 1.5790 (38.2% correction) in an attempt to gather bullish momentum to support the incline to target 1.6100 as far as 1.5590 is intact.

The trading range for today is among the key support at 1.5590 and the key resistance at 1.6200

The general trend is tot eh upside as far as 1.4840 is intact with targets at 1.6600

Support: 1.5845, 1.5790, 1.5745, 1.5700, 1.5645
Resistance: 1.5890, 1.5935, 1.6005, 1.6030, 1.6100

Recommendation: According to our analysis, buy the pair above 1.5790 with targets at 1.5930 and stop loss with four hour closing below 1.5700

JPY

The Dollar recovered some of the losses versus the yen to slightly incline towards 94.55. The key resistance for the downside channel shifted to 94.85 and we expect the pair to maintain trading below this level to target 93.50 and 92.40 as far as 97.05 is intact.

The trading range for today is among the key support at 91.90 and the key resistance at 97.05

The general trend is to the downside as far as 102.60 remains intact with targets at 84.95 and 82.60

Support: 94.40, 93.95, 93.50, 92.95, 92.40
Resistance: 94.85, 95.25, 95.75, 96.45, 97.05

Recommendation: According to our analysis, sell the pair below 94.85 with targets at 93.50 and stop loss with four hour clsoing above 95.55

CHF

The Dollar versus Swissy pair was able to reach the key support for the downside channel to reach 1.0820 where it has currently rebounded to target 1.1095. We expect the pair to continue the correction on the intraday basis to reach 1.0960 – 1.0980 as it is pressured by momentum indicators showing the pair being oversold before reversing back to the downside to target the short term targets at 1.0745 and 1.0570 respectively as far as 1.1090 is intact.

The trading range for today is among the key support at 1.0745 and the key resistance at 1.1205

The general trend is to the upside as far as 1.0570 is intact with targets at 1.2245

Support: 1.0820, 1.0770, 1.0745, 1.0710, 1.0655
Resistance: 1.0900, 1.0960, 1.1040, 1.1090, 1.1125

Recommendation: According to our analysis, sell the pair below 1.0960 with targets at 1.0820 and stop loss with four hour closing above 1.1040

CAD

The Dollar versus Loonie was able to breach the pivotal support for the general trend at 1.1335 as it close below it where the trend is now to the downside. On the intraday, the pair may correct to the upside to reach 1.1335 in an attempt to retest the level before reversing back to the downside to target 1.0300 after successfully breaching the key support at 1.0930. The downside trend continues as far as 1.1885 is intact.

The trading range for today is among the key support at 1.0935 and the key resistance at 1.1620

The general trend is to the downside as far as 1.1885 is intact with targets at 1.0300

Support: 1.1195, 1.1170, 1.1085, 1.1040, 1.0980
Resistance: 1.1300, 1.1335, 1.1370, 1.1415, 1.1475

Recommendation: According to our analysis, sell the pair below 1.1300 with targets at 1.1195 and stop loss with four hour closing above 1.1370

Technical Analysis for Crosses

GBP/JPY

A daily detected harmonic butterfly is under progress as seen on the above chart; with a potential target for completion at 38.2% Fibonacci for the descending rally started at 215.84 areas and was bottomed out at 118.79. This pattern encourages us to say that the short term direction is to the upside targeting the mentioned level which also represents the ideal target of 127.00 % Fibonacci of XA leg at 155.80 zones. AROON indicator is to the upside. Acceleration will be with a break of 151.50 areas.

Trading range for today is among key support at 147.30 and key resistance at 155.85.

The general trend is to the downside as far as 156.20.remains intact with target at 116.00.

Support: 150.90, 149.95, 149.00, 148.25, 147.30
Resistance: 151.50, 152.25, 152.75, 153.50, 154.20

Recommendation: According to our analysis, buy the pair at 150.90 with targets at 153.50 and stop loss at 148.80.

EUR/JPY

The short term outlook has been changed to the upside, depending on the harmonic butterfly pattern which is still aiming to put a potential high around 50% Fibonacci of the entire rally started at 169.90 zones. This area represents at the same time the 127% Fibonacci of XA - perfect target – for D target at 140.90. Hence we see more upside actions today particularly with a break of 134.15 zones.

Trading range for today is among key support at 129.25 and key resistance now at 137.40.

The general trend is to the downside as far as 141.44 remains intact with targets at 100.00 followed by 88.97 levels.

Support: 132.80, 132.00, 131.50, 130.75, 130.05
Resistance: 133.60, 134.15, 134.85, 135.65, 136.10

Recommendation: According to our analysis, buy the pair at 133.00 with targets at 135.25 and stop loss at 131.15

EUR/GBP

The royal pair has obtained the support it needs from the areas around 0.8720-0.8760 inside the previous discussed spans channel, forming an overall bullish candlestick pattern. Hence will keep our outlook to the upside today supported by the bulls power gradually increasing. Carefully note that a break of 0.8840 is needed to confirm our intraday basis bullishness.

Trading range is among the key support 0.8680 and key resistance now at 0.9000.

The general trend is to the upside as far as 0.8020 area remains intact with targets at 1.0000 followed by 1.0400 levels.

Support: 0.8760, 0.8720, 0.8700, 0.8680, 0.8655
Resistance: 0.8835, 0.8865, 0.8900, 0.8930, 0.9000

Recommendation: According to our analysis, buy the pair at 0.8800 with targets at 0.8890 and stop loss at 0.8730.

Fundamental Analysis
We should see thin market conditions today due to Memorial Day trading, and I am personally taking the day off trading and analyzing with the exception of the German IFO at 04:00 EST. We'll take a fresh look at the markets after the holiday, but for now:

0400 German IFO Business Climate - (85.0 expected) This indicator has a good track record with deviations of 1 or greater.
If it comes out at 86 or higher, EUR/USD should rally 35+ pips
If it comes out at 83.9 or lower, EUR/USD should sell off by 35+ pips.

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