FX.co ★ Fractal analysis of major currency pairs on May 7, 2021

Outlook on May 7:

Analysis of popular currency pairs on the hourly (H1) chart:

The key levels for the EUR/USD pair are 1.2193, 1.2167, 1.2138, 1.2106, 1.2050, 1.2030 and 1.1985. The price has set out the potential initial conditions for the upward trend of May 5. We expect growth to continue after the level of 1.2106 is broken. The target is set at 1.2138 and the price may consolidate around it. If the target breaks down, the movement will extend to the level of 1.2167. We also expect price consolidation near it. The final potential upward target is 1.2193, from which a downward pullback can be expected.

A short-term decline, in turn, is likely in the range of 1.2050 - 1.2030. If the last value is broken, a strong downward trend will develop. Here, the potential target is 1.1985.

The main trend is a downward trend from April 29, upward potential from May 5

Trading recommendations:

Buy: 1.2106 Take profit: 1.2136

Buy: 1.2140 Take profit: 1.2166

Sell: 1.2050 Take profit: 1.2032

Sell: 1.2026 Take profit: 1.1985

The key levels for the GBP/USD pair are 1.4070, 1.4030, 1.4008, 1.3961, 1.3929, 1.3866, 1.3848, 1.3829 and 1.3800. The price has been following the formation of the bullish trend from April 30. We expect this trend to resume after the level of 1.3929 is broken. The target is set at 1.3961 and the price may consolidate near it. If this target breaks down, strong growth will continue to the next target of 1.4008. Afterwards, a short-term growth and consolidation can be expected in the range of 1.4008 - 1.4030. The ultimate potential upward target is 1.4070. After reaching it, a downward pullback is possible.

A short-term decline can be expected in the 1.3866 - 1.3848 range. If the level of 1.3848 is broken, a deep correction will occur. The target is set at 1.3829, which is the key support level.

The main trend is the upward trend from April 30.

Trading recommendations:

Buy: 1.3929 Take profit: 1.3960

Buy: 1.3963 Take profit: 1.4008

Sell: 1.3848 Take profit: 1.3831

Sell: 1.3828 Take profit: 1.3800

The key levels for the USD/CHF pair are 0.9128, 0.9106, 0.9092, 0.9049, 0.9035, 0.9035, 0.9013, 0.8999 and 0.8970. We are monitoring the formation of the initial conditions for the downward trend of May 5. In this case, we expect a short-term decline in the 0.9049 - 0.9035 range. If the latter is broken, strong downward movement will resume to the next target of 0.9013. The price may consolidate around which, namely to the range of 0.9013 - 0.8999. The final potential downward target is 0.8970. After reaching it, an upward pullback can be expected.

On the other hand, a short-term growth can be expected in the range of 0.9092 - 0.9106. If the last value breaks down, a deep correction may follow. The target is set at 0.9128, which is the key support level.

The main trend is the downward trend from May 5.

Trading recommendations:

Buy: 0.9092 Take profit: 0.9105

Buy: 0.9107 Take profit: 0.9126

Sell: 0.9049 Take profit: 0.9036

Sell: 0.9033 Take profit: 0.9014

The key levels for the USD/JPY pair are 110.80, 110.30, 110.08, 109.69, 109.11, 108.90 and 108.51. The price has been moving in an upward trend since April 23. We expect this trend to resume after the level of 109.70 is broken. The target is set at 110.08. Afterwards, a short-term growth and consolidation can be expected in the 110.08 - 110.30 range. The ultimate potential upward target is 110.80. After reaching this level, a downward pullback can be considered.

Meanwhile, a short-term decline is likely in the range of 109.11 - 108.90. If the last value breaks down, the downward trend will develop. The potential target is set at 108.51.

The main trend is the upward trend from April 23.

Trading recommendations:

Buy: 109.70 Take profit: 110.08

Buy: 110.10 Take profit: 110.30

Sell: 109.11 Take profit: 108.91

Sell: 108.88 Take profit: 108.54

The key levels for the USD/CAD pair are 1.2334, 1.2251, 1.2200, 1.2139, 1.2055, 1.2016 and 1.1953. The price has been moving in a downward trend since April 21. We expect the decline to continue after the level of 1.2139 is broken. The target is set at 1.2055. After that, the price may consolidate in the range of 1.2055 - 1.2016. The ultimate potential downward target is 1.1953. After reaching this level, the price may pullback upwards.

A short-term growth is expected in the range 1.2200 - 1.2251. If the latter breaks down, a deep correction may follow. The target is 1.2334.

The main trend is the downward trend from April 21.

Trading recommendations:

Buy: 1.2200 Take profit: 1.2250

Buy: 1.2253 Take profit: 1.2332

Sell: 1.2137 Take profit: 1.2055

Sell: 1.2016 Take profit: 1.1955

The key levels for the AUD/USD pair are 0.7893, 0.7874, 0.7821, 0.7794, 0.7750, 0.7729. 0.7709 and 0.7678. The price has been following the formation of the bullish trend from May 4. Here, we expect a short-term growth in the 0.7794 - 0.7821 range. If the latter is broken, strong growth will continue to the next target of 0.7874. The ultimate potential upward target is 0.7893, from which a downward pullback can be expected.

A short-term decline is possible in the 0.7750 - 0.7730 range. If the last value is broken, a deep movement will follow. The target is 0.7710, which is the key support level.

The main trend is the upward trend from May 4.

Trading recommendations:

Buy: 0.7795 Take profit: 0.7820

Buy: 0.7823 Take profit: 0.7874

Sell: 0.7750 Take profit: 0.7730

Sell: 0.7709 Take profit: 0.7680

The key levels for the EUR/JPY pair are 132.99, 132.82, 132.44, 132.14, 131.96, 131.60, 131.42, 131.18 and 130.96. The price has formed a local upward trend from May 5. Thus, we expect growth to continue after the price breaks through the 131.96 - 132.14 range. The target is set at 132.44 and the price may consolidate around this level. The breakdown of the level of 132.46 will lead to a strong growth to the next target of 132.82. The final potential upward target is 132.99. After reaching it, a downward pullback can be expected.

In turn, a short-term decline is expected in the 131.60 - 131.42 range. If the latter breaks down, a deep correction can be expected. The target is set at 131.18, which is the key support level.

The main trend is the local upward trend from May 5.

Trading recommendations:

Buy: 131.65 Take profit: 131.96

Buy: 132.17 Take profit: 132.64

Sell: 131.10 Take profit: 130.80

Sell: 130.70 Take profit: 130.30

The key levels for the GBP/JPY pair are 153.28, 152.65, 152.35, 151.92, 151.46, 151.18 and 150.75. The price has been moving in a bullish trend since April 23. We expect the upward movement to resume after the level of 151.92 is broken. The target is set at 152.35. After that, a short-term growth and consolidation may occur in the range of 152.35 - 152.65. If the level of 152.65 is broken, strong growth will continue to the potential target of 153.28.

A short-term decline is possible in the range of 151.46 - 151.18. If the last value is broken, a deep correction will occur. The target is set at 150.75.

The main trend is the upward trend from April 23.

Trading recommendations:

Buy: 151.94 Take profit: 152.35

Buy: 152.65 Take profit: 153.28

Sell: 151.46 Take profit: 151.18

Sell: 151.16 Take profit: 150.75