Forex Technical Major Pairs Analysis | May 23, 2022

USDX (USD Index)

The bearish pressure on the U.S dollar index continues this week as the index moves lower to target the 100.00 – 100.30 area. Traders will wait for the index to reach support levels and produce bullish reactions before entering long positions in the U.S dollar. Shorting is not suggested as the long-term trend of the index is bullish and a sudden reversal could happen at any time.

EUR/USD

EUR/USD trading upward and currently moving above the 1.0650 level. The pair keep climbing and continue the bullish correction. If the pair could continue moving upward then it will target the 1.1000 resistance level also the daily SMA 200. Traedrs will wait near resistance levels for chance to enter short positions when there is major bearish reaction.

Today’s critical levels to watch:

Support: 1.0339, 1.0000

Resistance: 1.0650, 1.0800, 1.0900

GBP/USD

GBP/USD continues the bullish correction and soon will reach the 1.2625 resistance level. Similar to the situation in EUR/USD and U.S dollar index. Traders will wait until the pair reach major levels and produce reactions before entering positions. On the upside, there is room for correction up to the 1.3000 or the daily SMA 200.

Today Critical level to watch:

Support: 1.2500, 1.2400, 1.2200, 1.2100, 1.2000

Resistance: 1.2625, 1.3000

USD/JPY

USD/JPY undergo bearish pressure but no breakout below the 23.6% Fibonacci Retracement level yet. Althought the pair is expected to continue lower and target the trendline and the blue box area, the pair might continue trading sideway and resume the bullish movement anytime.

Traders will wait for a bearish correction to happen for a chance to enter long positions at a better level.

Today’s critical levels to watch:

Support: 126.00, 125.00, 120.00

Resistance: 130.00

AUD/USD

AUD/USD continues the bullish correction and soon will reach the 0.7160 level. As mentioned in the previous week’s analysis, traders will use the current bullish correction as a chance to enter short positions. On the upside, 0.7160 and the daily SMA 200 are the levels to watch for bearish reaction.

Today critical levels to watch:

Support: 0.7000, 0.6820, 0.6750

Resistance: 0.7160

Copyright © 2022. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.