FX.co ★ Fractal analysis of major currency pairs on May 31, 2021

Outlook on May 31:

Analytical overview of popular currency pairs on the H1 TF:

The key levels for the EUR/USD pair are 1.2290, 1.2266, 1.2234, 1.2182, 1.2161, 1.2132, 1.2118, and 1.2091. The price has been moving in a downward trend since May 25. Thus, we expect a short-term decline in the range of 1.2182 - 1.2161. If the latter breaks down, a strong decline will continue to the target of 1.2132. After that, the price may consolidate in the 1.2132 - 1.2118 range. The final potential downward target is 1.2091. After reaching it, the price may consolidate and pull back upwards.

A short-term growth, in turn, is likely in the range of 1.2214 - 1.2234. If the last value breaks down, it will favor the development of an upward trend. The breakdown of the first target of 1.2266 will allow us to move to the next level of 1.2290. The upward potential target is the level of 1.2314.

The main trend is the downward trend from May 25.

Trading recommendations:

Buy: 1.2214 Take profit: 1.2233

Buy: 1.2235 Take profit: 1.2264

Sell: 1.2180 Take profit: 1.2161

Sell: 1.2159 Take profit: 1.2134

The key levels for the GBP/USD pair are 1.4343, 1.4323, 1.4275, 1.4252, 1.4221, 1.4169, 1.4144, 1.4109 and 1.4085. The development of the upward trend from May 13 and the local upward trend from May 27 is being followed. Now, we expect growth to continue after the level of 1.4221 is broken. The target is set at 1.4252. After that, the price may consolidate in the range of 1.4252 - 1.4275. If the last value breaks down, the strong decline should continue towards the potential target of 1.4343. After reaching this level, the price may consolidate and pull back downwards.

A short-term decline is possible in the range of 1.4169 - 1.4144. If the latter breaks down, this will encourage the development of a downward trend. The first potential target is 1.4109. The noise range is set at 1.4109 - 1.4085.

The main trend is the local upward trend from May 27.

Trading recommendations:

Buy: 1.4221 Take profit: 1.4252

Buy: 1.4276 Take profit: 1.4323

Sell: 1.4169 Take profit: 1.4145

Sell: 1.4142 Take profit: 1.4110

The key levels for the USD/CHF pair are 0.9091, 0.9067, 0.9036, 0.9018, 0.8988, 0.8976, 0.8959 and 0.8928. The updated targets for the upward trend from the May 25 initial conditions are now determined. We expect the upward movement to resume after the level of 0.9018 is broken. The target is set at 0.9036 and the price may consolidate around it. The breakdown of the specified target will continue the strong growth to the next target of 0.9067. The ultimate potential upward target is 0.9091. After reaching it, a downward pullback can be expected.

A short-term decline can be expected in the range of 0.8988 - 0.8976. If the level of 0.8976 breaks down, a deep correction will occur. The target is set at 0.8959, which is also the key support level.

The main trend is the upward trend from May 25.

Trading recommendations:

Buy: 0.9018 Take profit: 0.9034

Buy: 0.9037 Take profit: 0.9066

Sell: 0.8988 Take profit: 0.8976

Sell: 0.8974 Take profit: 0.8960

The key levels for the USD/JPY pair are 110.56, 110.27. 110.13, 109.97, 109.76, 109.63, 109.47 and 109.39. The price has been moving in a bullish trend since May 25. We expect this trend to continue after the level of 109.97 breaks down. The target is set at 110.13. After that, short-term growth and consolidation can be expected in the range of 110.13 - 110.27. The final potential upward target is 110.56, After reaching it, a downward pullback may occur.

On the other hand, a short-term decline is possible in the range of 109.76 - 109.63, from which an upward reversal can be expected. If the latter is broken, a deep correction may follow. The target is 109.47. The key support is the range of 109.47 - 109.39.

The main trend is the upward trend from May 25.

Trading recommendations:

Buy: 109.98 Take profit: 110.13

Buy: 110.15 Take profit: 110.26

Sell: 109.76 Take profit: 109.65

Sell: 109.61 Take profit: 109.48

The key levels for the USD/CAD pair are 1.2227, 1.2208, 1.2165, 1.2143, 1.2118, 1.2058 and 1.2027. The formation of an upward trend from May 25 is closely monitored. If the price decides to cancel this trend, it is necessary to break through the level of 1.2058. The first target is set at 1.2027.

Meanwhile, the upward movement will continue if the level of 1.2118 breaks down. The first target is set at 1.2143. Short-term growth is expected in the range of 1.2143 - 1.2165. Once the latter is broken, the strong upward movement will continue to the next target of 1.2208. The final potential upward target is 1.2227. After reaching it, the price may pull back downwards.

The main trend is the formation of an upward trend from May 25, deep correction stage.

Trading recommendations:

Buy: 1.2118 Take profit: 1.2143

Buy: 1.2144 Take profit: 1.2164

Sell: 1.2058 Take profit: 1.2028

Sell: Take profit:

The key levels for the AUD/USD pair are 0.7866, 0.7819, 0.7790, 0.7766, 0.7714, 0.7690, 0.7650 and 0.7634. The price has been following a local downward trend since May 18. Here, we expect a short-term decline in the range of 0.7714 - 0.7690. If the last value breaks down, a strong decline will continue to the next target of 0.7650. The final potential downward target is 0.7634. After reaching it, a pullback into the correction can be expected.

In turn, short-term growth is expected in the range of 0.7766 - 0.7790. If the latter breaks down, the upward trend will develop. The first target is set at 0.7819, up to which the formation of local initial conditions is possible. The upward potential target is 0.7866. A downward pullback may follow after reaching it.

The main trend is the downward trend from May 18.

Trading recommendations:

Buy: 0.7766 Take profit: 0.7788

Buy: 0.7791 Take profit: 0.7819

Sell: 0.7714 Take profit: 0.7693

Sell: 0.7688 Take profit: 0.7650

The key levels for the EUR/JPY pair are 134.74, 134.39, 133.98, 133.71, 133.48, 133.30, and 132.87. The price has been moving in a local bullish trend since May 24. We expect this trend to extend after the level of 133.98 is broken. The target is set at 134.39 and the price may consolidate near it. The ultimate potential upward target is set 134.74. After reaching it, a downward pullback can be expected.

Alternatively, the short-term decline is possible in the range of 133.71 - 133.48. If the last value breaks down, a deep correction will occur. The target is set at 133.30. The key support is in the range of 133.48 - 133.30.

The main trend is the local upward trend from May 24.

Trading recommendations:

Buy: 133.98 Take profit: 134.37

Buy: 133.41 Take profit: 134.74

Sell: 133.69 Take profit: 133.48

Sell: 133.47 Take profit: 133.30

The key levels for the GBP/JPY pair are 156.88, 156.57, 156.09, 155.55, 155.14, and 154.60. The main upward targets from the impulsive movement on May 25 were already determined. At the moment, we expect the upward movement to continue after the level of 156.09 is broken. The target is set at 156.57. The final potential upward target is 156.88. After reaching it, the price may consolidate.

A short-term decline can be expected in the 155.55 - 155.14 range. If the latter breaks down, a deep correction will occur. The target is set at 154.60, which is also the key support level.

The main trend is the upward trend from April 23.

Trading recommendations:

Buy: 156.10 Take profit: 156.57

Buy: 156.58 Take profit: 156.88

Sell: 155.55 Take profit: 155.17

Sell: 155.12 Take profit: 154.66