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Fractal analysis of major currency pairs on May 27, 2021

Outlook on May 27:

Analytical overview of popular currency pairs on the H1 TF:

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The key levels for the EUR/USD pair are 1.2290, 1.2266, 1.2234, 1.2182, 1.2161, 1.2132 and 1.2118. The price is in deep correction from the upward trend and is forming a downward potential from May 25. In this case, we expect a short-term decline in the range of 1.2182 - 1.2161. If the latter breaks down, a strong decline will continue to the target of 1.2132. The final potential downward target is 1.2118. After reaching it, the price may consolidate and pullback upwards.

A short-term growth, in turn, is possible in the 1.2214 - 1.2234 range. If the last value breaks down, it will favor the development of an upward trend. The breakdown of the first target of 1.2266 will allow us to move to the next level of 1.2290. The upward potential here is the level of 1.2314.

The main trend is the local upward trend from May 13, deep correction stage.

Trading recommendations:

Buy: 1.2214 Take profit: 1.2233

Buy: 1.2235 Take profit: 1.2264

Sell: 1.2180 Take profit: 1.2161

Sell: 1.2159 Take profit: 1.2134

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The key levels for the GBP/USD pair are 1.4343, 1.4323, 1.4275, 1.4252, 1.4221, 1.4174, 1.4109, 1.4085, 1.4045 and 1.4007. The price has been moving in a bullish trend since May 13. We expect this trend to resume once the level of 1.4174 is broken. The first target is set at 1.4221, whose breakdown will allow us to move to the next level of 1.4252. After that, the price may consolidate in the range of 1.4252 - 1.4275. If the latter breaks down, it should be accompanied by a strong decline to the potential target of 1.4343. After reaching this level, the price may consolidate and pullback downwards.

A short-term decline is likely in the 1.4109 - 1.4085 range. If the level of 1.4085 breaks down, the downward trend will develop. The first potential target is 1.4045, and consolidation is near it.

The main trend is the local upward trend from May 13.

Trading recommendations:

Buy: 1.4174 Take profit: 1.4220

Buy: 1.4221 Take profit: 1.4252

Sell: 1.4109 Take profit: 1.4087

Sell: 1.4085 Take profit: 1.4047

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The key levels for the USD/CHF pair are 0.9020, 0.8993, 0..8976, 0.8956, 0.8942, 0.8919 and 0.8903. The downward trend from May 12 is considered as the main trend. Now, we expect a short-term decline in the range of 0.8956- 0.8942. If the last value breaks down, a strong decline will continue to the target of 0.8919. The ultimate potential downward target is 0.8903. After reaching this level, a price consolidation and upward pullback can be expected.

On the other hand, short-term growth is expected in the 0.8976 - 0.8993 range. If the latter is broken, a deep correction will occur. The target is set at 0.9020, which is also the key support level. The price breaking through it will cause the formation of initial conditions for an upward trend. The potential target is set at 0.9046.

The main trend is the downward trend from May 12.

Trading recommendations:

Buy: 0.8976 Take profit: 0.8991

Buy: 0.8995 Take profit: 0.9020

Sell: 0.8956 Take profit: 0.8943

Sell: 0.8940 Take profit: 0.8920

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The key levels for the USD/JPY pair are 109.92, 109.72, 109.63, 109.39, 109.24, 108.99, 108.83 and 108.59. The price is forming an upward potential from May 25. Thus, we expect a short-term growth in the range of 109.24 - 109.39. If the latter breaks down, strong upward movement will continue to the next target of 109.63. After that, the price may consolidate in the range of 109.63 - 109.72. The final potential upward target is 109.92. After reaching it, a downward pullback may occur.

A short-term decline is possible in the range 108.99 - 108.83, from which an upward reversal can be expected. If the latter is broken, the downward trend will develop. The potential target is 108.59.

The main trend is the formation of an upward trend from May 25.

Trading recommendations:

Buy: 109.25 Take profit: 109.37

Buy: 109.41 Take profit: 109.63

Sell: 108.99 Take profit: 108.85

Sell: 108.80 Take profit: 108.61

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The key levels for the USD/CAD pair are 1.2227, 1.2208, 1.2165, 1.2143, 1.2097, 1.2071 and 1.2027. The price has been moving in a bullish trend since May 25. Now, we expect a short-term growth in the 1.2143 - 1.2165 range. If the last value breaks down, strong upward movement will continue to the next target of 1.2208. The ultimate potential upward target is 1.2227. After reaching it, a downward pullback can be expected.

A short-term decline is likely in the range of 1.2097 - 1.2071, wherein a key upward reversal can be expected. If the latter breaks down, it will encourage the development of a downward trend. The target is 1.2027.

The main trend is the formation of an upward trend from May 25.

Trading recommendations:

Buy: 1.2144 Take profit: 1.2164

Buy: 1.2166 Take profit: 1.2206

Sell: 1.2095 Take profit: 1.2074

Sell: 1.2069 Take profit: 1.2030

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The key levels for the AUD/USD pair are 0.7866, 0.7819, 0.7790, 0.7766, 0.7714, 0.7690, 0.7650 and 0.7634. The price has been following a local downward trend since May 18. Now, we expect a short-term decline in the 0.7714 - 0.7690 range. If the last value breaks down, a strong decline will continue to the next target of 0.7650. The final potential downward target is 0.7634. After reaching it, a pullback into the correction can be expected.

Meanwhile, short-term growth is expected in the range of 0.7766 - 0.7790. If the latter breaks down, the upward trend will develop. The first target is set at 0.7819, up to which the formation of local initial conditions is possible. The upward potential target is 0.7866. A downward pullback may follow after reaching it.

The main trend is the upward trend from May 13.

Trading recommendations:

Buy: 0.7766 Take profit: 0.7788

Buy: 0.7791 Take profit: 0.7819

Sell: 0.7714 Take profit: 0.7693

Sell: 0.7688 Take profit: 0.7650

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The key levels for the EUR/JPY pair are 134.74, 134.39, 133.98, 133.71, 133.40, 133.03, 132.80 and 132.48. The price has been moving in a local upward trend since May 24. We expect this trend to extend after the level of 133.40 is broken. The first target is set at 133.71. After that, short-term growth may occur in the 133.71 - 133.98 range. If the latter breaks down, strong growth will resume to the next target of 134.39. The price may consolidate near it. The final potential upward target is 134.74. After reaching it, a downward pullback is possible.

A short-term decline can be expected in the range of 133.03 - 132.80. If the last value breaks down, this will favor the development of a downward movement. The first potential target is 132.48.

The main trend is the local upward trend from May 24.

Trading recommendations:

Buy: 133.41 Take profit: 133.70

Buy: 133.71 Take profit: 133.96

Sell: 133.03 Take profit: 132.80

Sell: 132.79 Take profit: 132.50

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The key levels for the GBP/JPY pair are 156.01, 154.97, 154.51, 153.42, 152.96 and 152.16. The price has been moving in an upward trend since April 23. Now, we expect a short-term growth in the range of 154.51 - 154.97. The final potential upward target is set at 156.01, from which a downward pullback can be expected.

In turn, a short-term decline can be expected in the range of 153.42 - 152.96. If the latter breaks down, a deep correction will occur. The target is set at 152.16.

The main trend is the upward trend from April 23.

Trading recommendations:

Buy: 154.51 Take profit: 154.96

Buy: 155.00 Take profit: 156.00

Sell: 153.40 Take profit: 152.96

Sell: 152.94 Take profit: 152.20

The material has been provided by InstaForex Company - www.instaforex.com