FX.co ★ Daily analysis of major pairs for May 24, 2017

EUR/USD: This currency trading instrument experienced a shallow bearish retracement after testing the resistance line at 1.1250. That resistance line is now under siege, since the price is expected to test it again, and possibly breach it to the upside, as it goes further north. The ultimate target for this week is located at the resistance line of 1.1300.

USD/CHF: The USD/CHF did not do anything really significant on May 23. There remains a Bearish Confirmation Pattern in the market, and a further decline in the price is anticipated as price goes towards the support levels at 0.9750, 0.9700 and 0.9650. The only thing that can change the direction of the market is a large pullback on the EUR/USD.

GBP/USD: The Cable remains a bullish market in spite of the recent consolidation on it. More and more northward movement is anticipated this week, but there would be invalidation of the existing bullish outlook, especially when the price goes southwards by about 200 pips. The market has become quite choppy lately.

USD/JPY: The USD/JPY has moved sideways so far this week, in the context of a downtrend. A breakout is imminent, which would most probably be in favor of bulls. Since the existing downtrend is expected to be threatened, the price may go towards the supply levels at 112.00, 112.50 and 113.00 before the end of the week.

EUR/JPY: Just like the USD/JPY, this cross pair has also consolidated so far this week. There is a bullish indication in the 4-hour chart: The EMA 11 is above 56, while the RSI period 14 is above the level 50. A breakout to the upside is expected, which may enable the supply zones at 125.50, 126.00 and 126.50 to be tested.