INTRADAY TECHNICAL ANALYSIS MAY 24th (observation as of  08:00 UTC)

[EURUSD]

Important Levels to Watch for:

-        Resistance line of 1.07808

-        Support line of 1. 07662

Commentary/ Reason:

1.      The price broke out of its sideways position but unable to push lower and entered a consolidation phase before breaking upward that is now seeing a push downward as traders take profits.

2.      The pair was uncertain on its direction until significant macro data released strengthen USD more than Euro.

3.      The german manufacturing and services PMI came in mixed and the PMI report for eurozone is also mixed while german ifo business climate index will be swaying the market.

4.      The price is expected to trade lower as price reached a resistance area and pullback from its rally to break support 1.07808 which can be considered another resistance now.

5.      Technical indicator is mixed in its direction while lagging indicator is buy while leading sell. Moving average for shorter term is sell while medium term says buy but ultimately longest term are sell indicating further possibility of downtrend as supported by parallel channel.

[USDCHF]

Important Levels to Watch for:

-        Resistance line of 0.90223

-        Support line of 0.89955

Commentary/ Reason:

1.      The pair have been in strong downtrend but a reversal pattern that is inverse head and shoulder pattern emerged indicating stronger USD or weakening CHF.

2.      The price have already break out of the pattern but made a fake breakout at resistance 0.90223 and pullback but there is a continuation pattern expected to break out of.

3.      There is no significant macro data from Switzerland while the US is expecting to find clue in the feds meeting minutes.

4.      The price is expected to move further upward on strengthening dollar to 0.90426 if it successfully break out of resistance 0.90223.

5.      Technical indicators is blaring with buy signals with sensitive indicators throwing overbought signals while moving average is all buy.

[USDJPY]

Important Levels to Watch for:

-        Resistance line of 138.741

-        Support line of 138.390

Commentary/ Reason:

1.      The pair were on a strong uptrend and now sideways in a wide range.

2.      The price was affected by strengthening USD that pushed it upward but Japan macro data that came better than expected have offset this as Nikkei 225 index have also shot upward.

3.      There no significant data from the Japan and FOMC meeting minutes from the US.

4.      The price is expected to continue upward after pulling back to about 50% of its small rally to the upper bound of the sideways trend with no clear medium-term direction.

5.      Technical indicators are showing buy across the board which could signal a continued uptrend.

[GBPUSD]

Important Levels to Watch for:

-        Resistance line of 1.24446

-        Support line of 1.24094

Commentary/ Reason:

1.      The pair have been on a uptrend but it eventually ends with sharp downturn and rebound.

2.      The price have been on a strong uptrend on dollar pullback but USD is strengthening once again on uncertainty around rate hike.

3.      There is an upcoming FOMC meeting minutes while CPI from the UK reported higher which pushed the price higher.

4.      The price is expected to keep falling lower but there’s a possibility of it rebounding to resistance level 1.24446 albeit improbable before continuing downtrend as the end of an uptrend price movement is usually a reversal.

5.      Technical indicator is blaring with selling signals with more sensitive indicators is oversold and moving average is mixed.