In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from May 20 to May 26.
It seemed that the recovery last week was not strong enough to reverse the bearish trend since April 20. From the beginning of the week, the Euro – Greenback exchange rate dropped significantly from the resistance level of 1.19198 and landed at 1.17682 with pressure from the traders taking profit of the EUR as well as the positive news on the USD. It is likely that the EUR/USD will experience another bearish week with the support level at 1.17108 being tested. On the contrary, the resistance level at 1.19198 could be retested should a correct come into play.
The British Pound – Greenback continued to have a week fluctuating around the support zone of 1.36005 - 1.34539 and ended at 1.34637. Given signs of a bearish movement in the last two trading days after a weak recovery, we believe the GBP/USD will have a short-term accumulation period before any important news show up and create a different trend. A penetration below the abovementioned area paves the way for a further decrease towards the next base around 1.32979 (Dec 15 nadir). Alternatively, a reassessment will be required as to whether a rally may come next week.
The Greenback – Japanese Yen had a considerable rise this week after a swing low last week and ended at 110.719. Such a strong increase will fortify the bullish trend formed this week with the resistance level at 111.489 (peak of Jan 18) brought into consideration. Otherwise, the support zone around 110.149 could be retested should a correction come into play.
The Greenback – Loonie had an overall week increasing except for the substantial fall on Wednesday and ended the week at 1.28798. As the USD/CAD exchange rate returned from the support area at 1.27989 and heading up strongly, the next movement at resistance level of 1.29151 will be analyzed carefully. At present, a really strong rally may lead the USD/CAD to break the mentioned resistance level, while falls with a strong bearish tendency will put the support area around 1.27989 back into consideration.
This week, the AUD – USD witnessed a swing high in the seemingly just-formed accumulation tendency. The current exchange rate is right on the support level of 0.75053, therefore the movement on next Monday will gain a lot of attention. Traders should prepare for a likely-to-happen rise at the opening of next week, as a new bottoming created on Wednesday and followed by firm increases. Given the fluctuation situation, the next resistance balk is ascertained at 0.75680, while the support zone at 0.74464 may again come in play should a retrace appears sooner than expected.
The significant bearish trend from mid - April continued on this week, or at least on the first two trading days. After reaching the bottom at 0.68460 on Wednesday, the NZD/USD exchange rate returned at 0.69148 on Friday. NZD traders should follow closely to any movement to acknowledge if a recover will happens or the bear continues to dominate. At present, a firm recovery may lead the NZD/USD to test the resistance level at 0.69824 again, or the continued bearish tendency will surely put the support level at 0.68460 back into consideration.