FX.co ★ Fractal analysis of the main currency pairs for May 7

Dear colleagues.

For the EUR / USD pair, we expect a move towards correction. The potential for the bottom is still limited by the level of 1.1888. For the GBP / USD pair, we expect a correction to take place after the breakdown of 1.3614. For the downward movement, we are not considering further goals for the time being. For the USD / CHF pair, the price is near the limit values for the upward structure of April 10 so we expect a pullback in the area of correction. For the USD / JPY pair, we are monitoring the formation of the potential for the downward movement of May 2. For the EUR / JPY pair, the continuation of the main downward trend from April 24 is expected after the breakdown of 130.20. For the GBP / JPY pair, the continuation of the development of the main downward trend from April 26 is expected after the breakdown of 146.85. The upward movement is considered as a correction.

Forecast for May 7:

Analytical review of currency pairs in the scale of H1:

For the EUR / USD pair, the key levels on the scale of H1 are: 1.2145, 1.2105, 1.2050, 1.2013, 1.1949 and 1.1888. Here, we follow the downward structure of April 17. The continuation of the movement downwards is expected after the breakdown of 1.1949. In this case, the potential target is 1.1888. Upon reaching this level, we expect a rollback to the top.

Short-term upward movement is possible in the area of 1.2013 - 1.2050. The breakdown of the last value will lead to a deeper movement. Here, the target is 1.2105. The potential value for the top is the level 1.2145. Up to this level, we expect the initial conditions for the upward cycle to be formalized.

The main trend is the downward cycle from April 17, we expect a correction.

Trading recommendations:

Buy: 1.2013 Take profit: 1.2048

Buy 1.2052 Take profit: 1.2105

Sell: 1.1947 Take profit: 1.1890

Sell: Take profit:

For the GBP / USD pair, the key levels on the scale of H1 are 1.3847, 1.3752, 1.3684, 1.3614, 1.3614 and 1.3482. Here, we expect a move into correction. The upward movement is expected after the breakdown of 1.3614. In this case, the target is 1.3684. Short-term upward movement is possible in the area of 1.3684 - 1.3752. The breakdown of the last value will lead to movement. Here, the target is 1.3847. Up to this level, the design of potential initial conditions for the top is possible.

For the downward movement, we do not yet determine the subsequent goals.

The main trend is a downward structure from April 17. We expect a correction.

Trading recommendations:

Buy: 1.3616 Take profit: 1.3682

Buy: 1.3684 Take profit: 1.3750

Sell: Take profit:

Sell: Take profit:

For the USD / CHF pair, the key levels on the scale of H1 are: 1.0025, 0.9976, 0.9939, 0.9910, 0.9874 and 0.9854. Here, we follow the upward structure of April 10 and currently, we expect a correction. The potential value for the top is the level of 1.0025. The movement towards this level is expected after the breakdown of 0.9976.

Short-term downward movement is possible in the area of 0.9939 - 0.9910. The breakdown of the last value will lead to in-depth correction. Here, the target is 0.9874. The range of 0.9874 - 0.9854 is noise.

The main trend is the upward structure from April 10. We expect a correction.

Trading recommendations:

Buy: 0.9978 Take profit: 1.0025

Buy: Take profit:

Sell: 0.9939 Take profit: 0.9912

Sell: 0.9908 Take profit: 0.9876

For the USD / JPY pair, the key levels on the scale are: 109.57, 109.35, 109.19, 108.91, 108.70, 108.54, 108.17 and 107.88. Here, the price forms the initial conditions for the downward cycle from May 2. The continuation of the downward movement is expected after the breakdown of 108.91. In this case, the target is 108.70. In the area of 108.70 - 108.54 is the consolidation of the price. The break at the level of 108.54 should be accompanied by a pronounced downward movement. Here, the target is 108.17. Near this level is the consolidation of the price. The potential value for the bottom is the level of 107.88. Upon reaching this level, we expect a rollback to the top.

Short-term upward movement is possible in the area of 109.19 - 109.35. The breakdown of the last value will lead to in-depth correction. Here, the target is 109.57. This level is the key support for the downward structure from May 2.

The main trend is the formation of initial conditions for the downward cycle of May 2.

Trading recommendations:

Buy: 109.19 Take profit: 109.33

Buy: 109.37 Take profit: 109.55

Sell: 108.90 Take profit: 108.72

Sell: 108.52 Take profit: 108.20

For the CAD / USD pair, the key levels on the H1 scale are: 1.2982, 1.2930, 1.2909, 1.2871, 1.2819, 1.2790, 1.2745 and 1.2708. Here, we continue to monitor the upward structure of April 17. The continuation of the upward movement is expected after the breakdown of 1.2871. In this case, the target is 1.2909. In the area of 1.2909 - 1.2930 is the consolidation of the price. The potential value for the top is the level of 1.2982. Upon reaching this level, we expect a pullback downwards.

Short-term downward movement is possible in the area of 1.2819 - 1.2790. The breakdown of the last value will lead to in-depth correction. Here, the target is 1.2745. This level is the key support for the top of April 17. Its breakdown will lead to the formation of the initial conditions for the downward cycle. In this case, the target is 1.2708.

The main trend is the upward structure of April 17.

Trading recommendations:

Buy: 1.2871 Take profit: 1.2907

Buy: 1.2932 Take profit: 1.2980

Sell: 1.2817 Take profit: 1.2792

Sell: 1.2788 Take profit: 1.2747

For the AUD / USD pair, the key H1 scale levels are: 0.7622, 0.7590, 0.7544, 0.7474 and 0.7436. Here, we expect the formation of initial conditions for the upward cycle. Short-term upward movement is expected in the range of 0.7544 - 0.7590. The potential value for the top is still the level of 0.7622. Up to this level, we expect the design of the structure to form.

Short-term downward movement is possible in the area of 0.7474 - 0.7436. We do not consider further goals for the bottom.

The main trend is the downward structure from April 19, the correction stage.

Trading recommendations:

Buy: 0.7546 Take profit: 0.7588

Buy: 0.7592 Take profit: 0.7620

Sell: 0.7474 Take profit: 0.7438

Sell: Take profit:

For the of EUR / JPY pair, the key levels on the scale of H1 are: 131.32, 130.92, 130.62, 130.21, 129.70, 129.37, 128.91 and 128.62. Here, we follow the downward structure of April 24. The continuation of the movement downwards is expected after the breakdown of 130.20. In this case, the target is 129.70. In the area of 129.70 - 129.37 is the consolidation of the price. The potential value for the bottom is the level of 128.62. The movement towards this level is expected after the breakdown of the level of 129.30. In the area of 128.91 - 128.62 is the consolidation of the price.

Short-term upward movement is possible in the area of 130.62 - 130.92. The breakdown of the last value will lead to in-depth correction. Here, the target is 131.32. This level is the key support for the downward structure. Its breakdown will lead to the formation of an upward structure. Here, the potential target is 131.92.

The main trend is the downward structure of April 24.

Trading recommendations:

Buy: 130.62 Take profit: 130.90

Buy: 130.95 Take profit: 131.30

Sell: 130.18 Take profit: 129.75

Sell: 129.35 Take profit: 128.70

For the GBP / JPY pair, the key levels on the scale of H1 are: 149.81, 149.18, 148.67, 147.63, 146.88, 147.75 and 145.12. Here, we follow the local top-down structure of April 26. The continuation of the downward movement is expected after the breakdown of 147.63. In this case, the target is 146.88. Near this level is the consolidation of the price. The breakdown of 146.85 should be accompanied by a pronounced downward movement. Here, the target is 145.75. The potential value for the bottom is the level 145.12. From this level, we expect a rollback towards correction.

Short-term upward movement is possible in the area of 148.67 - 149.18. The breakdown of the last value will lead to in-depth correction. Here, the target is 149.81.

The main trend is the local downward structure of April 26.

Trading recommendations:

Buy: 148.67 Take profit: 149.15

Buy: 149.22 Take profit: 149.75

Sell: 147.60 Take profit: 146.95

Sell: 146.85 Take profit: 145.90