Weekly Technical Forecast (May 13 - May 19)

In this article, we would like to present the weekly technical forecast targeting the prospects of major financial assets during the period from May 06 to May 12.

EUR/USD: Bullish

At the very beginning of the week, the Euro – Greenback exchange penetrated the 1.19383 support territory beautifully, continued a tremendous bearish trend from the end of April. However, the last two trading days showed positive sign with the support territory at 1.18211 tested and the exchange rate heading back to the support territory breached on Monday. This may be the indicator for a short-term recovery next week, while a drop
below 1,18211 will bring the nadir on Dec 12 last year into consideration.

Weekly Technical Forecast (May 13 - May 19)


GBP/USD: Neutral

The British Pound – Greenback has a week fluctuating around the support zone 1.35501 - 1.34630 and ended at 1.35383. Given a short-term consolidation after a half-month bearish trend, we expect a correction before prices might continue to head lower. A penetration below the abovementioned area paves the way for a further decrease towards the next base around 1.33466 (Dec 22 nadir). Alternatively, a reassessment will be required as to whether a rally may come next week.

Weekly Technical Forecast (May 13 - May 19)


USD/JPY: Neutral

The Greenback – Japanese Yen is witnessing a slight fall when the swing low ended on this Thursday at 109.358. The bearish sentiment from the resistance level at 110.296 (Feb 05 peak) led to the rise in JPY value right after a considerable rise of USD/JPY on Wednesday. Given the last two days’ bearish tendency, the support area determined at 108.697 will be tested next week to see should the bullish trend from the end of March is solid. Otherwise, the resistance level at 110.296 could be retested should a correct come into play.

Weekly Technical Forecast (May 13 - May 19)


USD/CAD: Neutral

The Greenback – Loonie posted a positive start to the week but has spent the remainder of the week penetrating considerably under the EMA 20 - SMA 50 line. Given that the support level at 1.28040 (Mar 09 nadir) breached, we highly recommend investors to observe the market with prudence as the next support level at 1.26670 (Dec 05 nadir) is still far from current rate, and we also had hope for a recovery with the Friday’s rise. At the moment, a really strong rally may lead the USD/CAD to test the resistance level at 1.31197 again, or continuous falls with a strong bearish tendency will put the support area around back into consideration.

Weekly Technical Forecast (May 13 - May 19)


AUD/USD: Neutral

This week, the AUD – USD also witnessed a swing low in the current long-term downward tendency. The support line at 0.74998 was pierced right from the beginning of the week on Tuesday. However, the actions on the last three days trading posted signs of bears taking profit on USD with a clear recovery on AUD/USD. The next resistance balk is ascertained at 0.76306, while the support zone at 0.74998 may again come in play should a retrace appears sooner than expected.

Weekly Technical Forecast (May 13 - May 19)


NZD/USD: Bearish

The significant bearish trend from mid - April has not ended on this Friday. Given the bearish propensity dominated the market, the support zone at 0.69489 – 0.69785 is forecasted to be penetrated next week. Investors in NZD should hold any investing decision for a moment to review any sign on a recover. At present, a rally shows up may lead the USD/CAD to test the resistance level at 0.70338 again, or continuous falls in the bearish bias, which are much more likely to happen, will surely put the support level at 0.69624 into consideration.

Weekly Technical Forecast (May 13 - May 19)

See also:
Weekly Forex technical forecast Aug 13 - 17
Weekly Forex technical forecast Aug 13 - 17
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Weekly technical forecast Aug 06 - 10
Weekly technical forecast Aug 06 - 10
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