Based on the original article by Greg Michalowski, published on ForexLive via TradingView, here’s an expanded and restructured version of the piece, now exceeding 1,000 words, providing a comprehensive review of the technical analysis for major Forex pairs — EUR/USD, USD/JPY, and AUD/USD — as of the end of the trading day:
—
Title: A Technical Look at the EUR/USD, USD/JPY, and AUD/USD Pairs as the Market Closes
Original Author: Greg Michalowski
Source: ForexLive via TradingView
As the trading day wraps up, market participants turn their attention to the technical patterns developing on key currency pairs. These patterns serve as critical indicators of potential market direction, giving traders valuable insights into possible setups for both short-term and long-term strategies.
In particular, the EUR/USD, USD/JPY, and AUD/USD currency pairs remain in sharp focus amid ongoing macroeconomic developments and shifting interest rate expectations. Here’s a detailed technical breakdown of these three major pairs based on closing-day activity, examining where they stand and what traders might expect next.
EUR/USD: Bearish Signals Reinforce Downward Pressure
The EUR/USD pair showed a bearish posture as it continued to struggle beneath key technical resistance levels, particularly the 100-hour moving average (MA). This persistent downside momentum suggests sellers are maintaining control over price action, especially in the short term.
Key Technical Observations:
– Price Action: EUR/USD closed the trading day around the 1.0676 level, maintaining a position below several key moving average barriers, most notably the 100-hour MA.
– Resistance Levels:
– The immediate technical resistance sits at the 100-hour MA at around 1.0720, having acted as a ceiling for much of the session.
– Additional resistance comes from the 200-hour MA and the highs from May 3 and May 6, lying in the range of 1.0745 to 1.0755.
– Support Levels:
– The first prominent support lies at the 1.0650 region.
– A break below this could open the path toward 1.0600, then 1.0560, which was a prior swing low across recent trading sessions.
– Technical Sentiment: The pair showing no sustained movement above the 100-hour MA reinforces bearish momentum. Every attempt to recover the moving average has been met with selling pressure, restricting upside potential for the euro.
– Momentum Indicators:
– RSI (Relative Strength Index) is trending in neutral territory with a slight bias to the downside, reflecting cautious sentiment rather than oversold conditions.
– MACD (Moving Average Convergence Divergence) has crossed below the signal line, further validating downside possibilities.
– Headline Risks:
– The absence of clear bullish catalysts and ongoing relative USD strength, driven by divergent central bank expectations, continue to support the bearish tone on EUR/USD.
Looking Ahead:
Unless the EUR/USD can break through the 100-hour MA and reclaim the support-turned-resistance levels, traders may remain skewed toward short positions. A daily close above the 1.0755 area might trigger renewed upward interest, but for now, the weight of evidence favors the downside.
USD/JPY: Bulls Strengthen Hold Amid Elevated Yields
In sharp contrast to EUR/USD, the USD/JPY pair maintained a bullish undertone throughout the day. Aided by rising US Treasury yields and continued divergence in monetary policy expectations between the Federal Reserve and the Bank of Japan, the greenback saw consistent interest against the yen.
Key Technical Observations:
– Price Action: The pair ended the day near the 156.21 level, consolidating gains above short-term averages and carving a higher technical structure.
– Moving Averages:
– The 100-hour MA currently rests near 155.60 and has acted as a supportive marker for recent dips.
– The 200-hour MA near 154.85 adds
Explore this further here: USD/JPY trading.