FX Daily Analysis (2016.05.24)

FX Daily Analysis – EURUSD is trading in a tight range supported above the 1.120 handle, while gold prices look to be posting a strong consolidation near the 1245 – 1250 support which could indicate a potential weakening of the previously established trends.
EURUSD Daily Analysis

EURUSD (1.120): EURUSD has been trading flat for the third day in a row with price action sitting firmly above the 1.120 support. The flat range is likely to see a break out in the near term but the bias is increasingly pointing to a decline towards 1.10 on a break of the support at 1.120 where the current consolidation is taking place. Only a convincing close above 1.12170 will see EURUSD move to 1.13 – 1.1270 minor resistance.

USDJPY Daily Analysis

USDJPY (109.30): USDJPY turned bearish yesterday but prices are capped between the 50 period daily EMA as dynamic resistance and the 20 period daily EMA as the dynamic support. A break below 109.3 could see USDJPY push lower towards 107.955 – 107.50. On the 4-hour chart, price action has cleared the minor support near 109.733 – 109.350 but we do not rule out another move to the upside back towards the 110.6 region.

GBPUSD Daily Analysis

GBPUSD (1.448): GBPUSD closed bearish yesterday but failed to test the support at 1.44250. Price action remains poised to the downside for a test to 1.4312 – 1.430 support. To the upside, a retest back to 1.453 – 1.4585 is likely, but the upside remains limited unless GBPUSD will break above the previous highs of 1.4635.

Gold Daily Analysis

XAUUSD (1245): Gold prices continue to remain bearish but in small ranges. Price action is seen to be strongly consolidating near the 1250 handle which could see a possible break down of prices below this level for a move to the next lower support at 1230 – 1231.50. On the 4-hour chart price action is however seen supported by the median line and trading below the 1250 mark. The Stochastics point to a higher low forming in prices which could see the bullish divergence potentially see gold move higher. Above 1250, resistance at 1262 – 1258 will be an important level to watch.

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