Technical analysis EUR/USD, GBP/USD and USD/JPY 20 May 2013


Technical analysisEUR/USD

The assumptions expressed in the previous comments were confirmed: the price dropped to the target at 1.2840/50 and even continued to fall before it was stopped by support at 1.2795/1.2800. The pair is now trading at 1.2840/50, i.e. testing the broken level as resistance. Obviously, the pair is expected to fall to a new local minimum at 1.2750/40 in the near future. Should the pair rise above 1.2840/50 and fix there, there is expected a correction limited by resistance at 1.2900/30, while reduction to 1.2750/40 is expected later. The indicators show that the pair may stop its decline and start its correction. Should the price rise and break the resistance as 1.3050, this will signal a change in the bullish trend.

EURUSD technical analysis on 20.05.13


Just as expected, the price on this pair stopped falling, had a correction in the range between 1.5300-1.5200, and then had an attempt to break 1.5200 support. This attempt ended in touching the level of 1.5155/60. Now the pair is testing the strength of the broken resistance at 1.5200, which may mean reduction to a range between the levels of 1.5080/70 – 1.5040/501.50. Should the trade move up and consolidate above 1.5200, the resumption of the bearish trend will take place later. The indicators have weakened the evidence of the downward movement, which could mean an upcoming correction in a range limited by the levels of 1.5300 – 1.5200/1.5160. However, the medium-term prospects indicate a fall to 1.5040/50 and then towards 1.4830/40, with a risk of the pair’s fall to new local minima at 1.4600.

GBPUSD technical analysis on20.05.13


Just as expected, the pair reached the target at 102.40/50, but this obstacle on the way up has briefly restrained the bulls, as the resistance was broken. The pair has tested the level of 103.20/30 and then started a rollback. The pair is now trading at 102.50/60. Some indicators have changed for the downward, which suggests high probability of a downward correction. Breaking the tested level of 102.50/60/40 will confirm these expectations and provide good arguments to expect a move down to 101.20/30 and a return to the level of 100.0 to test its strength as support. At the same time, there are no signals of a reversal, so the price may rise to the range between 103.50/60-104.00 from the current levels.

USDJPY technical analysis on 20.05.13


About Author

Hello, my name is Arkady Nagiev and I’ve been working for Forex4you company since 2008. I received an economic education and worked in various sectors of former Soviet Union. After the dissolution of the USSR, I decided to engage in the banking sector. In 1994 I took "Banking" course in the Moscow International Financial and Banking School. After that, I worked in the banks of Turkmenistan and Ukraine. While working at the bank, I became interested in the foreign exchange market, which required additional knowledge and pushed me to study strategies and techniques for the analysis of foreign exchange instruments. At first, I thought that technical analysis would be enough, but I soon realized that I was wrong, and began to study fundamental analysis. I sincerely hope that my Forex reviews and financial analyses help our clients to gain a better understanding of the forex market. Good luck with your trading everyone!