Forex Daily Analysis

May 13, 2021

US CPI may a big impact on the market, putting the Dollar in the driving seat. Although big gains were made yesterday, key support in a number of currencies have remained intact, these need to be broken for the USD to change its negative longer term outlook.

EURUSD

Support for the EUR remains at 1.2060, if the USD is unable to break this level, it will be a sign of continued EUR strength and the uptrend will resume towards the previous high of 1.2180.

A clear break of 1.2060 would open a drop to 1.2020 and then 1.1980.

Resistance will be found in 1.2120/30 and again at 1.2170/80

GBPUSD

Resistance in the 1.4090/1.4110 looks to be the barrier to the recent GBP highs. However, if broken it will be followed by a run up to 1.4160, and possibly new highs towards 1.4200.

Support at 1.4040 looks to be strong from dip buyers, however if it breaks down, you will see a test of support in the 1.3980/1.4000 area.

USDJPY

Resistance ahead of 110.00 may slow the dollars advance against the JPY. However, increasing US Bond Yields make the JPY hypersensitive, therefore, if US yields go up, so will USDJPY and vice versa.

Resistance is now at 109.80/90 and more will be found around 110.30/40

Some support from dip buys will be found at 109.40 , strong support will be found at 109.10/109.00 and down at 108.60/108.50.

Analysis is from Point & Figure charts provided by http://www.eightdragonscapital.com

For more information on how to trade Forex and Gold contact support@8dragonstrade.com

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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