Daily Forecast: May 22

[FxInstructor]

EURUSD Forecast
The EURUSD was volatile yesterday but overall still able to maintain its bullish correction intraday bias. The bias remains bullish in nearest term testing 1.2875 but the major outlook remains to the downside and I still prefer to sell on rallies. We have a rising wedge formation and CCI bearish divergence on hourly chart and I expect the current bullish momentum is to be short lived. Immediate support is seen around 1.2750. A clear break below that area could trigger further bearish pressure testing 1.2700 – 1.2625/41 key support area. On the upside, a clear break and daily close above 1.2875 could trigger further bullish pullback testing 1.3000 area.



GBPUSD Forecast
The GBPUSD was indecisive yesterday. There are no changes in my technical outlook. The bias remains neutral in nearest term but as long as stays below 1.6000 I still prefer a bearish scenario at this phase with sell on rallies strategy as a part of the bearish scenario after broke below the trend line support. Immediate resistance remains around 1.5885. A clear break and daily close above that area could trigger further bullish pressure testing 1.6000 key resistance. Immediate support remains around 1.5780. A clear break below that area could trigger further bearish pressure retesting 1.5731 before testing 1.5650 support area.



USDJPY Forecast
The USDJPY bearish momentum was stopped yesterday but we have no significant movement so far with low volatility. There are no changes in my technical outlook. The bias remains bearish in nearest term testing 78.27/50 area. Immediate resistance remains around 79.52. A clear break above that area could lead price to neutral zone in nearest term but we need a clear break and daily close at least back above 80.00 to give the bullish reversal outlook another chance with a false breakdown scenario. The current bearish outlook may lead price to retest the record low at 75.56 but any movement near to the record low might give a good buying opportunity.



USDCHF Forecast
The USDCHF was volatile yesterday but overall still able to maintain its bearish correction intraday bias. There are no changes in my technical outlook. The bias remains bearish in nearest term but as long as stays above 0.9320 I still prefer to buy on dips with stop loss below 0.9320. Immediate resistance is seen around 0.9437 (yesterday’s high). A clear break above that area could lead price to neutral zone in nearest term retesting 0.9500 which need to be broken to continue the bullish scenario testing 0.9600. On the downside, a clear break and daily close back below 0.9320 would activate my wait and see mode as direction would become unclear with a bearish intraday bias.



Have a great day!