EURUSD’s Bearish Flag and Potential Reversals
Solid ECN—The EURUSD currency pair trades in a bearish flag near the upper band. At the time of writing, the bears are keeping the price below the 50% Fibonacci level at $1.084. Interestingly, the 4-hour chart has formed an inverted hammer, suggesting that the downtrend may resume.
The technical indicators suggest a neutral market, with awesome oscillator bars small and clinging to the zero line and the RSI indicator moving sideways alongside the 50 line.
From a technical standpoint, the immediate support is the 61.8% Fibonacci retracement level at 1.086. If the exchange rate remains below this level, the downtrend that began in May is likely to extend with an initial target at the middle Bollinger band, followed by the 23.6% Fibonacci level at $1.082.
Conversely, if the bulls close and stabilize the price above the immediate support at 1.086, the bullish wave that began last week could target the 78.6% Fibonacci at 1.087, followed by the May all-time high at 1.089.
GBP/USD Faces Resistance: Market Outlook
Solid ECN—The GBP/USD currency pair trades in an uptrend, facing the $1.276 immediate resistance. The Stochastic oscillator (14.3.3) suggests an overbought market. Therefore, the pound sterling might lose ground against the U.S. Dollar. The ascending trendline supports the current bullish wave, while the Awesome Oscillator indicates a divergence.
However, the trend hasn’t reversed, and it seems the divergence signal refers to a consolidation phase. The market is still overbought, and we do not suggest going long in this market situation.
From a technical standpoint, the uptrend will likely escalate if the bulls cross above the immediate resistance at 1.276. If this scenario occurs, the road to the next significant support at $1.289 can be paved.
On the other hand, if the bears cross below the ascending trendline (in red), the price could dip to the key support at $1.263. This level provides a decent bid for bullish traders to reevaluate the market. Therefore, it is recommended that traders wait for the GBP/USD to either break out or dip to the key support before joining the market, either as a bull or as a bear.
Will AUD/USD Break Out? Key Levels to Watch
Solid ECN —AUD/USD resumed its uptrend after hitting the ascending trendline at $0.659. As of writing, the pair is trading inside the symmetrical triangle, testing the upper line at $0.664.
The technical indicators suggest a resumption of the uptrend. Therefore, if the bulls manage to close and stabilize the price above the immediate resistance at $0.664, the next bullish target could be $0.668.
On the flip side, if the price remains inside the wedge pattern, it will likely float sideways to the apex, targeting the ascending trendline again.
USD/CAD Breaks Below Key Fibonacci Levels
Solid ECN—USD/CAD broke below the 61.8% Fibonacci level today, and as of writing, the pair trades at approximately 1.363 CAD. The current bearish momentum will likely target the 78.6% Fibonacci level at 1.362 CAD.
Bullish traders should wait for signs of a reversal or consolidation phase at the 78.6% Fibonacci level. If the selling pressure exceeds this level, the next bearish target will be the May low of 1.358 CAD.
EUR/USD Analysis: Bullish Flag Pattern Insights
Solid ECN—The EUR/USD currency pair trades in a bullish flag pattern, stabilizing above the 78.6% Fibonacci level at $1.08. The technical indicators are bullish. The RSI (14) value at 65 indicates some room left before becoming oversold, suggesting that the bullish momentum will likely continue.
From a technical standpoint, the uptrend is expected to persist as long as the EUR/USD trades above the ascending trendline and the 61.7% Fibonacci level at $1.086. In this scenario, the next target will be $1.089.
Conversely, if the price dips below $1.086, the 50% Fibonacci level at $1.084 will be the next support. If the price falls below $1.084, the bullish outlook should be invalidated, and the trend would likely shift from a bull market to a bear market.
Silver Analysis
The silver price became overbought after the bulls hit the $31 high. Subsequently, the chart formed a long-wick bearish candlestick pattern, which led to the price entering a consolidation phase. As of writing, the pair is testing the Ichimoku cloud as support, maintaining its position above the 25-day simple moving average.
From a technical standpoint, the primary trend is bullish, and the 23.6% Fibonacci level offers a decent opportunity to join the bull market. Another option to join the bullish market is to wait for a breakout above the immediate resistance at $31.8. If this scenario continues, the next bullish target will be $32.5.
Conversely, the bullish outlook should be canceled if the silver price dips below the 25-day SMA. In this case, the dip that began today could extend to the 38.2% Fibonacci level at $30.
Pound Sterling Soars: Technical Analysis of GBP/USD
Solid ECN—The GBP/USD currency pair broke above the 1.276 immediate resistance in today’s trading session. This development in the pound sterling drove the relative strength index indicator into the overbought area, signifying that the market might reverse or initiate a consolidation phase.
From a technical standpoint, the road to 1.28 is paved, but for the bulls to achieve this target, the price must maintain its position above the ascending trendline.
The bullish outlook will be invalidated if the GBP/USD price drops below the ascending trendline. 1.267 is the next support level in this scenario, followed by 1.263.
NZD/USD - Entry Points and Bullish Targets
Solid ECN—The NZD/USD currency pair broke above the immediate support at 0.6139, and as of writing, it is trading at approximately at 0.616. The RSI indicator is becoming overbought, indicating that the uptrend might ease, and the market will likely experience a consolidation phase.
From a technical standpoint, the overbought RSI could lead the U.S. Dollar to erase some of its recent losses. Hence, if the price dips to the ascending trendline, this level around 0.613 can provide a decent entry point to join the bullish momentum. In this scenario, the next bullish target should be set at 0.621.
Conversely, if the NZD/USD dips below the ascending trendline, the initial support level will be 0.608, followed by the secondary support level at 0.603.
USD/CHF Eyes Bullish Reversal Above Key Resistance
Solid ECN—The USD/CHF currency pair bounced from the 38.2% Fibonacci support level at $0.909. As of writing, the pair is targeting the 23.6% Fibonacci level at $0.911. The RSI value is increasing and moving away from the oversold area, indicating that the market trend could shift from a bearish to a bullish market. However, the bulls must overcome the $0.911 barrier.
From a technical standpoint, for the trend to reverse, the price must close and stabilize above $0.911. If this scenario unfolds, the next bullish target will be the middle band of the Bollinger.
On the flip side, if the price fails to close above the immediate resistance, the downtrend that began on May 23 will likely resume, initially testing the $0.909 level.
GBP/USD Tests Key Support Amid Divergence Signals
Solid ECN—The GBP/USD currency pair dipped from the $1.280 high today and is currently testing the $1.275 immediate support. The middle band of the Bollinger Bands and the May 22 high reinforce this support level.
- The Awesome Oscillator signals divergence, indicating a potential trend reversal or consolidation.
- The RSI indicator reads 56, approaching the 50 line, suggesting that the upward momentum is weakening.
From a technical standpoint, while indicators suggest a bearish trend might be imminent, the price remains above the ascending trendline. The pair must stay above this trendline for the primary bullish trend to continue. If this occurs, the bulls’ first target is $1.280, and with increased buying pressure, the price could move towards $1.289.
Conversely, if the GBP/USD price falls below the immediate support at 1.274, it will likely test the 1.267 support, followed by the $1.263 level.
EUR/USD Outlook - May-29-2024
Solid ECN—The EUR/USD pair is trading in an uptrend at approximately 1.084 in today’s session. The pair bounced from the 38.2% Fibonacci retracement level at 1.083, a support reinforced by the ascending trendline.
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The Relative Strength Index (RSI) is at 47, hovering below the median line, indicating that bearish momentum may resume.
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The Awesome Oscillator is also declining toward the zero line, currently reading 0.0006, further suggesting a strengthening bearish momentum.
From a technical perspective, the primary trend remains bullish, with the current bounce from 1.088 potentially representing a consolidation phase. The uptrend is likely to continue if the EUR/USD price remains above the ascending trendline and the 38.2% Fibonacci retracement level at 1.083. In this case, the next resistance levels are the 78.6% Fibonacci retracement at 1.087, followed by the May all-time high at 1.089.
Conversely, the bullish scenario would be invalidated if the pair dips below the ascending trendline and the 23.6% Fibonacci level. Should this occur, the next support level would be at 1.080, corresponding to the May 24 low.
GBP/USD Testing Key Resistance Levels
Solid ECN—The GBP/USD price bounced from the $1.267 support and is testing the $1.274 resistance. The RSI value is 53, above the median line, and the awesome oscillator bars are below zero, but the colors have turned green, and the value is on the rise. These developments in the technical indicators suggest that the trend might resume its bullish momentum.
Immediate resistance is at $1.274. For the bull market to resume, the GBP/USD must cross above this barrier. If this scenario comes into play, the road to retest the $1.280 resistance will be paved.
On the flip side, a failure to overcome the $1.274 barrier will likely result in the price declining, testing the immediate support at $1.267. If the selling pressure exceeds this level, the next bearish target could be $1.263.
USD/JPY Faces Critical $156.5 Resistance
Solid ECN—The USD/JPY currency pair is testing the $156.5 resistance level. This level is backed by the Ichimoku Cloud and the 50 SMA. Interestingly, the 4-hour chart has formed a hammer candlestick pattern, indicating that the price might bounce from this level. Meanwhile, the technical indicators show a sideways market.
From a technical perspective, USD/JPY is in a bull market. If the price holds above the immediate support at $156.5, it will likely rise to test the immediate resistance at $157.7.
Conversely, if the USD/JPY price dips below the immediate support, the next bearish target could be $155.6.
Will GBP/USD Break Above $1.276?
Solid ECN—The GBP/USD currency pair trades at about $1.273 in today’s trading session, which is below the descending trendline and the $1.276 resistance. The RSI indicator signals a sideways market, but the Awesome Oscillator value is on the rise and about to close above the signal level.
From a technical standpoint, for the uptrend to resume, the bulls must cross above the $1.276 level. If this scenario plays out, the next bullish target will be the $1.280 resistance.
On the flip side, if the price remains below the descending trendline, the price will likely target $1.2681, followed by the lower line of the bearish flag.
EURUSD Analysis
Solid ECN—The EUR/USD price declined from the $1.088 ceiling, and as of writing, the currency pair trades at about $1.084, testing the May 30 high. The technical indicators give mixed signals. The relative strength index clings to the median line, signaling a low momentum market. Furthermore, the awesome oscillator’s recent bar turned red, indicating that bearish momentum may resume.
The immediate resistance is at $1.085. From a technical standpoint, if the EUR/USD price holds below this resistance, the downtrend will likely resume, with the next bearish target at the May 30 low of $1.078.
Conversely, if the bulls cross above the $1.085 immediate resistance, the uptrend that began on May 30 will likely aim to exceed the $1.088 key resistance.
AUD/USD Tests Immediate Support
Solid ECN—The AUD/USD currency pair traded at $0.664 in today’s trading session. As of this writing, it is testing immediate support at $0.663. The technical indicators in the 4-hour chart suggest the currency pair is trading sideways, and the market lacks significant momentum.
From a technical perspective, if the AUD/USD bulls maintain their position above the immediate support at $0.663, the price will likely aim for the key resistance level at $0.668. The next bullish target should be $0.671 if the buying pressure exceeds this.
Conversely, if the bears push the price below the $0.663 support and stabilize it below it, the new bearish momentum will likely head to the next support at $0.659.
NZD/USD Tests Key Resistance at $0.616
Solid ECN—The NZD/USD currency pair bounced from the $0.613 immediate support level, and as of this writing, it is testing the broken ascending trendline, the key resistance level at $0.616.
The technical indicators suggest a sideways market with a mild bullish trend.
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The RSI is above the median line with a value of 60. The indicator is not overbought, meaning it can hold the uptick momentum around the key resistance and aim for a breakout.
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The Awesome Oscillator is bearish with red bars, but they are above the zero line, indicating that the bullish momentum might lose its strength.
From a technical standpoint, the key resistance level that paused the primary trend is $0.616. For the uptrend to resume, the NZD/USD price must close and stabilize above this level. If this scenario comes into play, the next bullish target should be set at the $0.621 mark.
Bearish Scenario
Conversely, if the bulls fail to cross the key resistance, the currency pair’s price will likely decline again, aiming for immediate support at $0.613. If the selling pressure increases, the next target will be $0.6086.
USD/CNH Symmetrical Triangle: Key Levels
Solid ECN—The USD/CNH currency pair traded at about $7.25 in today’s trading session. The currency pair has been moving sideways inside the symmetrical triangle, approaching the apex in the last three trading sessions. As of writing, the bears are testing the ascending trendline, a level supported by the Ichimoku cloud.
Moreover, the technical indicators signal that bearish momentum should escalate. Therefore, from a technical standpoint, if the USD/CNH slips below $7.255, the next resistance level should be set at $7.247. The Ichimoku cloud supports this demand area; therefore, the market might bounce from it.
Additionally, traders and investors should monitor the price action around the symmetrical triangle. If the selling pressure exceeds the critical support level at $7.245, the next bearish target will be $7.236.
On the flip side, the primary trend is bullish, and for it to resume, bulls must close above the immediate resistance at $7.26. If this scenario comes into play, the next bullish target should be set at the May all-time high of $7.275.
USD/JPY: Price Tests Ascending Trendline
Solid ECN—The USD/JPY currency pair has declined from $157.7 and is testing the ascending trendline at $154.7. This demand area is in conjunction with the Ichimoku cloud and the April 9 high.
The technical indicators signify a bearish profile.
- The RSI value is 45, below 50, and declining.
- The Awesome Oscillator value is 1.04, hovering above the signal line but declining.
From a technical standpoint, the primary trend is bullish. For the uptrend to resume, the bulls must maintain the price above the ascending trendline and the immediate support of $154.7. If this scenario unfolds, the USD/JPY will likely surge to retest the key resistance level at $157.7.
On the flip side, if the bears close the USD/JPY price below the ascending trendline and the immediate support, the next bearish target will likely be $151.9.
USD/CHF Downtrend: Key Levels to Watch
The USD/CHF downtrend gained momentum after breaking below the key resistance level at $0.90. As a result, the candles moved outside the lower Bollinger Band, indicating the market is oversold and may bounce back.
- The RSI is near the oversold area, showing a value of 31. This suggests a consolidation phase could be imminent.
From a technical perspective, traders and investors should avoid selling when the market is oversold. Instead, they should wait for the currency pair to consolidate near the upper key resistance at $0.90 and watch for bearish candlestick patterns. The downtrend will likely continue if such patterns appear, targeting $0.889 next.
Bullish Scenario
Conversely, the bearish outlook will be invalidated if USD/CHF stabilizes above the key resistance level of $0.90. The middle Bollinger Band will be the initial bullish target in this scenario, followed by resistance at $0.915.
Key Takeaways:
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USD/CHF is currently oversold and may bounce.
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RSI value is at 31, indicating a possible consolidation.
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Wait for consolidation near $0.90 before making moves.
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If the price stays above $0.90, look for targets at the middle Bollinger Band and $0.915.