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06.05.202113:42 Forex Analysis & Reviews: Technical analysis and recommendations for EUR/USD and GBP/USD on May 6, 2021

EUR/USD

Exchange Rates 06.05.2021 analysis

There were no noticeable changes in conclusions and expectations yesterday. The pair showed a slowdown, after falling into the attraction and influence zone of important support levels located at 1.1977 - 1.1947 - 1.1927 (daily cloud + monthly Tenkan + levels of the daily and weekly Ichimoku cross). The development of the rebound and the sharp recovery of the bullish positions will allow the pair to test again the nearest resistance levels of 1.2027 (weekly medium-term trend) and 1.2068 (daily short-term trend). If a consolidation above occurs, the interests of the bulls will be directed to the level of 1.2105 (weekly Fibo Kijun) and 1.2150 (historical level) again.

Exchange Rates 06.05.2021 analysis

The upward correction is currently developing in the smaller time frames. The bulls managed to break through the resistance of the central pivot level (1.2006) and started testing the nearest resistance of 1.2025 (R1). Next, the most important value will be the resistance line of the weekly long-term trend (1.2046). A consolidation above, reversal of the moving average, as well as the subsequent taking of the daily short-term trend (1.2068) will change the current balance of power and open up new prospects. On the other hand, if the bears return to the market, the support of the classic pivot levels (1.1984 -65-43) will become relevant again, which continues to maintain a strengthened support today from the upper time frames.

GBP/USD

Exchange Rates 06.05.2021 analysis

There have been no active changes in the situation throughout the previous day. The pair remains in the attraction zone of the daily cloud and some levels of the daily cross (1.3879 - 1.3902). At the same time, the pivot points also retain their significance and location. The levels of 1.3958 (upper border of the monthly cloud) and 1.4008 (maximum extreme) are important for bullish traders, while the levels of 1.3842 - 1.3806 (levels of the daily and weekly Ichimoku cross) are important for the bearish one.

Exchange Rates 06.05.2021 analysis

There has been a sideways movement recently in the smaller time frames. The pound sterling is in the zone of attraction and influence of the key levels of 1.3892-1.3900 (central pivot level + weekly long-term trend). If the preferences change and new moods appear, the movement may go beyond the established limits. For the bulls the intraday values are likely to be 1.3925 - 1.3950 - 1.3975 (resistance of the classic pivot levels), as for the bears, it will be interesting to break through the level of 1.3875 - 1.3850 - 1.3825 (supports classic pivot levels).

***

Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of the trading instruments.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Evangelos Poulakis,
Analytical expert
InstaForex Group © 2007-2021
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