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CURRENCIES TECHNICAL ANALYSIS May.28

Euro

The short-term picture remains unchanged for the EUR/USD pair. The selling interest is still strong and the euro is prone to show more weakness. Thus, the main currency pair accelerated its decline and posted fresh lows on Friday. The euro left the 1.1750-1.1700 area where it spent less than a day and dropped to 1.1650 where the spot closed the week. A bout of unexpected buying interest emerged in the night and pushed the price to 1.1725 where buyers lost momentum and the pair turned bearish again. The US dollar remained well bid the whole European session. As a result the major reversed all its night losses by noon. The technical indicators stand in negative territory and give us a strong sell signal. The resistance resides at 1.1700, the support comes in at 1.1650.

Sellers will lead the way in the short-term. A break below 1.1650 will show room for further downside towards the round level 1.1500.

GBP/USD

The pound ended on a weak note last week. Buyers kept struggling with sellers, however, the fight was unequal. Sellers stopped the pound's recovery and sent the major to new lows. They led the sterling from 1.3400 to 1.3300 where the downward momentum faded. The indicators recommend short positions. The resistance lies at 1.3400, the support comes in at 1.3300.

The bearish momentum is likely to be regained in the short-term. If so, the currency pair might hit the 1.3200 handle in the coming sessions.

USD/JPY

The ask tone around the US dollar still persists. Sellers moved the dollar to the 109.00 last week where the major found a decent support. The price has been fluctuating between 109.50 and 109.00 since that time. Sellers are exhausted after a long decline, besides the EMA200 is blocking their way. The technical indicators were mostly negative on Monday. MACD remained negative and RSI is oversold. The 50 and 100 EMAs kept changing their course while the EMA200 is still heading north. The resistance resides at 109.50, the support comes in at 109.00.

If the pair does not get fresh drivers, the price will continue bottoming between the mentioned levels.

GBP/JPY

The offered tone around the pound is still in place. GBP/JPY continued to trade in a descending channel on Monday. The sterling suffered another bout of selling weakness last week and had to leave the 146.00 area. Sellers regained this handle and drove the spot towards 145.00. The technical indicators are increasing bearish. MACD is feeling good in the negative territory. RSI formed a sell signal as well. The moving averages present a strong bearish slope. The resistance lies at 146.00, the support is at 145.00.

Everything points that another ask-wave is coming. Sellers are gathering fresh steam and are ready to attack 145.00 any moment now. As soon as they overcome this target, the 144.00 level will appear on the radar.

EUR/JPY

EUR/JPY had a positive start of the week. The euro gapped upwards and erased a minor portion of its losses in one moment. The major jumped from 127.50 to the 128.00 handle where sellers regained control. The spot got under heavy selling pressure after that and dropped to the opening prices afterwards. The indicators are giving us a strong sell signal. MACD is increasingly bearish. RSI stuck in the oversold area. The moving averages kept pointing lower. The resistance lies at 127.50, the support is at 127.00.

If the Japanese yen trades on a positive note, the euro may fall below the 127.00 mark and move towards 126.00 afterwards.

AUD/USD

The buying pressure started to ease when buyers failed to regain the 0.7600 level. The EMA200 appears to be defending the level well as the AUD bounced off the handle after every attempt to the upside. Despite the inability to grow higher the spot has no steam to turn bearish. The 50 and 100 EMAs which lie in the 0.7550 area provided an additional support for the currency pair. The technical indicators are mixed. Thus, MACD and RSI are declining approaching the negative ground. The 50 and 100 EMAs are neutral while the EMA200 is pointing lower. The resistance stands at 0.7600, the support is at 0.7550.

The EMA200 is a strong barrier and the AUD is unlikely to regain it in the short-term. We bet that sellers will return control this week and will lead AUD/USD towards 0.7500.

NASDAQ

The bid tone around NASDAQ remained intact on Monday. A fresh buying momentum emerged in the night and pushed the price from the 6930 area towards 6990. The benchmark faced selling rejection at the level and moved to 6960 afterwards. Nevertheless, buyers preserved control getting support from the 50 and 100 EMAs which are located in the 6930 area. MACD is positive and is keeping growing confirming the current positive bias. However, RSI is neutral giving no short-term signals. The 50, 100 and 200 EMAs extended their bullish slope. The resistance lies at 6990, the support exists at 6930.

To resume the uptrend, NASDAQ has to break the 6990 resistance level. A convincing break through this hurdle is likely to accelerate the up-move towards 7050.

DAX

DAX remained under pressure trying to retake the 13000 hurdle on Monday. After another unsuccessful attempt to reclaim this level the price sharply dropped to the 12900 support level. The technical indicators are giving mixed signals. While all the moving averages are continuing moving higher, MACD and RSI are staying in the negative ground. The resistance lies at 13000, the support exists at 12900.

We prefer to stay neutral waiting for a break below or above 12900 and 13000 correspondingly.

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