FX.co ★ Fractal analysis of major currency pairs on May 24, 2021

Outlook on May 24:

Analytical overview of popular currency pairs on the H1 TF:

The key levels for the EUR/USD pair are 1.2359, 1.2314, 1.2290, 1.2259, 1.2245, 1.2213, 1.2161, 1.2140 and 1.2107. The price is expected to continue rising after the level of 1.2213 is broken. The first target is set at 1.2245. Now, if the price breaks through the 1.2245 - 1.2259 range, strong growth will continue to the next target of 1.2290. After that, a short-term upward movement and consolidation may occur in the range of 1.2290 - 1.2314. The final potential upward target is 1.2359. After reaching this level, an upward pullback can be expected.

A short-term decline, in turn, is possible in the range of 1.2161 - 1.2140. If the latter breaks down, a deep correction will occur. The target is set at 1.2107, which is also the key support level.

The main trend is the local upward trend from May 13.

Trading recommendations:

Buy: 1.2213 Take profit: 1.2245

Buy: 1.2260 Take profit: 1.2290

Sell: 1.2160 Take profit: 1.2142

Sell: 1.2138 Take profit: 1.2108

The key levels for the GBP/USD pair are 1.4343, 1.4323, 1.4275, 1.4252, 1.4221, 1.4174, 1.4109, 1.4085, 1.4045 and 1.4007. The price has been moving in a bullish trend since May 13. We expect this trend to extend after the level of 1.4174 is broken. The first target is set at 1.4221. Its breakdown will allow the upward move to resume to the next level of 1.4252. Afterwards, the price may consolidate in the 1.4252 - 1.4275 range. If the last value breaks down, it should be accompanied by a strong decline towards the potential target of 1.4343. After reaching it, the price may consolidate and pull back downwards.

A short-term decline is likely in the range of 1.4109 - 1.4085. If the latter is broken down, it will provoke the development of a downward trend. The first potential target is 1.4045, and the price may consolidate near it.

The main trend is the local upward trend from May 13.

Trading recommendations:

Buy: 1.4174 Take profit: 1.4220

Buy: 1.4221 Take profit: 1.4252

Sell: 1.4085 Take profit: 1.4047

Sell: 1.4043 Take profit: 1.4007

The key levels for the USD/CHF pair are 0.9020, 0.8993, 0..8976, 0.8956, 0.8942, 0.8919 and 0.8903. The price has been moving in a downward trend since May 12. We expect a short-term decline in the 0.8956- 0.8942 range. If the latter breaks down, strong decline will continue to the target of 0.8919. The ultimate potential downward target is 0.8903. After reaching this level, the price may consolidate and pull back upwards.

Meanwhile, a short-term growth is expected in the range of 0.8976 - 0.8993. If the latter is broken, a deep correction will follow. The target is set at 0.9020, which is also the key support level. The price breaking through it will cause the formation of initial conditions for an upward trend. The potential target is set at 0.9046.

The main trend is the downward trend from May 12.

Trading recommendations:

Buy: 0.8976 Take profit: 0.8991

Buy: 0.8995 Take profit: 0.9020

Sell: 0.8956 Take profit: 0.8943

Sell: 0.8940 Take profit: 0.8920

The key levels for the USD/JPY pair are 109.35, 109.10, 108.95, 108.72, 108.59, 108.28 and 108.09. The price has been moving in a bearish trend since May 20. In this case, we expect a short-term decline in the 108.72 - 108.59 range. If the level of 108.59 breaks down, strong decline will continue to the next target of 108.28. The final potential downward target is 108.09. After reaching it, an upward pullback can be expected.

A short-term growth in the range of 108.95 - 109.10 is possible. If the last value breaks down, this will lead to the formation of an upward trend. The potential target is 109.35.

The main trend is the local downward trend from May 20.

Trading recommendations:

Buy: 108.95 Take profit: 109.10

Buy: 109.12 Take profit: 109.33

Sell: 108.72 Take profit: 108.61

Sell: 108.57 Take profit: 108.30

The key levels for the USD/CAD pair are 1.2143, 1.2097, 1.2053, 1.2016, 1.1978, 1.1950 and 1.1897. The price entered an equilibrium state. We expect the downward trend from May 19 to develop after the level of 1.2053 is broken. The target is set at 1.2016 and its breakdown will lead us to the level of 1.1978. After that, the price may consolidate in the 1.1978 - 1.1950 range. The ultimate potential downward target is 1.1897. After reaching it, an upward pullback is possible.

The key support for the downward trend from May 19 is the level of 1.2097. The breakdown of which will lead to the formation of an upward trend. The first target is 1.2143.

The main trend is an equilibrium state.

Trading recommendations:

Buy: 1.2097 Take profit: 1.2143

Buy: Take profit:

Sell: 1.2052 Take profit: 1.2017

Sell: 1.2015 Take profit: 1.1978

The key levels for the AUD/USD pair are 0.7851, 0.7817, 0.7785, 0.7766, 0.7715, 0.7702, 0.7673, 0.7647 and 0.7619. The current situation is in equilibrium state: an upward trend from May 13, and a downward potential from May 18. We expect the upward trend from May 13 to be cancelled once the price breaks through the range of 0.7715 - 0.7702. If this happens, the target will be at 0.7673. The final potential downward target is 0.7674. After reaching it, an upward pullback may occur.

On the other hand, short-term growth can be expected in the range of 0.7766 - 0.7785. If the latter breaks down, the upward trend will develop. The first target is 0.7817, which is the key resistance level for the subsequent development of an upward trend.

The main trend is an equilibrium situation.

Trading recommendations:

Buy: 0.7766 Take profit: 0.7784

Buy: 0.7787 Take profit: 0.7817

Sell: 0.7702 Take profit: 0.7675

Sell: 0.7671 Take profit: 0.7648

The key levels for the EUR/JPY pair are 134.10, 133.63, 133.40. 133.04, 132.48. 132.27, 131.98 and 131.61. The price has been moving in a bullish trend since May 5. We expect this growth to resume after breaking through the level of 133.04. The target is set at 133.40. After that, a short-term growth and consolidation can be expected in the range of 133.40 - 133.63. The ultimate potential upward target is 134.10. After reaching it, a downward pullback may occur.

Alternatively, a short-term decline can be expected in the range of 132.48 - 132.27. If the latter is broken, a deep correction will occur. The target is set at 131.98, which is also the key support level. The pierce breaking through it will favor the development of a downward trend. The first target is 131.61.

The main trend is the local upward trend from May 5.

Trading recommendations:

Buy: 133.04 Take profit: 133.40

Buy: 133.41 Take profit: 133.61

Sell: 132.48 Take profit: 132.30

Sell: 132.25 Take profit: 132.00

The key levels for the GBP/JPY pair are 156.01, 154.97, 154.51, 153.42, 152.96 and 152.16. The price has been moving in an upward trend since April 23. In this case, we expect a short-term growth in the range of 154.51 - 154.97. The final potential upward target is set at 156.01, from which a downward pullback may occur.

In turn, a short-term decline can be expected in the 153.42 - 152.96 range. If the latter breaks down, a deep correction will occur. The target is set at 152.16.

The main trend is the upward trend from April 23.

Trading recommendations:

Buy: 154.51 Take profit: 154.96

Buy: 155.00 Take profit: 156.00

Sell: 153.40 Take profit: 152.96

Sell: 152.94 Take profit: 152.20