Fractal analysis of the main currency pairs on May 6, 2020

Forecast for May 6:

Analytical review of currency pairs on the scale of H1:

For the euro / dollar pair, the key levels on the H1 scale are: 1.0900, 1.0870, 1.0852, 1.0818, 1.0792, 1.0771 and 1.0728. Here, we are following the development of the downward cycle of May 1. The continuation of the downward movement is expected after the breakdown of the level of 1.0818. In this case, the target is 1.0792. Price consolidation is in the range of 1.0792 – 1.0771. For the potential value for the bottom, we consider the level of 1.0728. Upon reaching which, we expect an upward pullback.

A short-term upward movement is possible in the range of 1.0852 – 1.0870. The breakdown of the last level will lead to an in-depth correction. Here, the target is 1.0900. This level is a key support for the top.

The main trend is the downward cycle of May 1.

Trading recommendations:

Buy: 1.0852 Take profit: 1.0870

Buy: 1.0872 Take profit: 1.0900

Sell: 1.0816 Take profit: 1.0792

Sell: 1.0770 Take profit: 1.0730

For the pound / dollar pair, the key levels on the H1 scale are: 1.2560, 1.2519, 1.2484, 1.2419, 1.2364, 1.2333 and 1.2264. Here, we are following the formation of the descending structure of April 30. The continuation of the downward movement is expected after the breakdown of the level of 1.2419. In this case, the target is 1.2364. Price consolidation is in the range of 1.2364 – 1.2333. For the potential value for the bottom, we consider the level of 1.2264. Upon reaching which, we expect a downward pullback.

A short-term upward movement is possible in the range of 1.2484 – 1.2519. The breakdown of the last level will lead to an in-depth correction. Here, the target is 1.2560. This level is a key support for the downward structure.

The main trend is the formation of the downward structure of April 30

Trading recommendations:

Buy: 1.2484 Take profit: 1.2517

Buy: 1.2521 Take profit: 1.2560

Sell: 1.2419 Take profit: 1.2366

Sell: 1.2333 Take profit: 1.2270

For the dollar / franc pair, the key levels on the H1 scale are: 0.9800, 0.9776, 0.9749, 0.9736 0.9711, 0.9695 and 0.9672. Here, we are following the development of the upward cycle of May 1. The continuation of the upward movement is expected after the price passes the noise range of 0.9736 – 0.9749. In this case, the target is 0.9776. For the potential value for the top, we consider the level of 0.9800. Upon reaching which, we expect a downward pullback.

A short-term downward movement is possible in the range of 0.9711 – 0.9695. The breakdown of the last level will lead to an in-depth correction. Here, the target is 0.9672. This level is a key support for the upward structure.

The main trend is the upward cycle of May 1

Trading recommendations:

Buy : 0.9750 Take profit: 0.9774

Buy : 0.9780 Take profit: 0.9800

Sell: 0.9710 Take profit: 0.9697

Sell: 0.9693 Take profit: 0.9674

For the dollar / yen pair, the key levels on the scale are : 106.89, 106.58, 106.42, 106.13, 105.80 and 105.52. Here, we are following the formation of the descending structure of April 30. The continuation of the upward movement is expected after the breakdown of the level of 106.13. In this case, the target is 105.80. Price consolidation is near this level. For the potential value for the bottom, we consider the level of 105.52. Upon reaching which, we expect an upward pullback.

Short-term upward movement is possible in the range of 106.42 – 106.58. The breakdown of the last level will lead to an in-depth correction. Here, the target is 106.89. This level is a key support for the bottom.

The main trend: the downward cycle of April 30

Trading recommendations:

Buy: 106.42 Take profit: 106.57

Buy : 106.60 Take profit: 106.87

Sell: 106.11 Take profit: 105.82

Sell: 105.78 Take profit: 105.54

For the Canadian dollar / US dollar pair, the key levels on the H1 scale are: 1.4341, 1.4304, 1.4235, 1.4159, 1.4112, 1.4052, 1.3997 and 1.3949. Here, we are following the formation of the ascending structure of April 30. Short-term upward movement is expected in the range of 1.4112 – 1.4159. The breakdown of the last level should be accompanied by a pronounced upward movement. Here, the target is 1.4235. Price consolidation is near this level. The breakdown of the level of 1.4235 will lead to movement to a potential target – 1.4341. Upon reaching which, we expect consolidation in the range of 1.4304 – 1.4341, as well as a downward pullback.

Short-term downward movement, as well as consolidation, are possible in the range of 1.4042 – 1.3997. The breakdown of the last level will lead to an in-depth correction. Here, the target is 1.3949. This level is a key support for the top and its breakdown will lead to the cancellation of the upward structure from April 30.

The main trend is the upward structure of April 30

Trading recommendations:

Buy: 1.4112 Take profit: 1.4157

Buy : 1.4160 Take profit: 1.4230

Sell: 1.4050 Take profit: 1.4000

Sell: 1.3995 Take profit: 1.3952

For the Australian dollar / US dollar pair, the key levels on the H1 scale are : 0.6487, 0.6446, 0.6413, 0.6368, 0.6337, 0.6299, 0.6254 and 0.6224. Here, we are following the development of the descending structure of April 30. Short-term downward movement is expected in the range of 0.6368 – 0.6337. The breakdown of the last level will lead to a movement to the level of 0.6299. We expect consolidation near this level. The breakdown of the level of 0.6297 should be accompanied by a pronounced downward movement. Here, the target is 0.6254. For the potential value for the bottom, we consider the level of 0.6224. Upon reaching which, we expect consolidation, as well as an upward pullback.

A short-term upward movement is expected in the range of 0.6446 – 0.6487. The breakdown of the last level will lead to the formation of initial conditions for the upward cycle. In this case, the potential target is 0.6571.

The main trend is the downward structure of April 30

Trading recommendations:

Buy: 0.6450 Take profit: 0.6486

Buy: 0.6490 Take profit: 0.6530

Sell : 0.6368 Take profit : 0.6338

Sell: 0.6335 Take profit: 0.6300

For the euro / yen pair, the key levels on the H1 scale are: 116.21, 115.79, 115.50, 114.92, 114.43 and 114.04. Here, we are following the development of the descending cycle of May 1 after the cancellation of the ascending structure. The continuation of the downward movement is expected after the breakdown of the level of 114.92. In this case, the target is 114.43. For the potential value for the bottom, we consider the level of 114.04. Upon reaching which, we expect consolidation, as well as an upward pullback.

A short-term upward movement is possible in the range of 115.50 – 115.79. The breakdown of the last level will lead to an in-depth correction. Here, the goal is 116.21. This level is a key support for the downward structure.

The main trend is the downward cycle of May 1

Trading recommendations:

Buy: 115.50 Take profit: 115.78

Buy: 115.81 Take profit: 116.20

Sell: 114.90 Take profit: 114.45

Sell: 114.40 Take profit: 114.06

For the pound / yen pair, the key levels on the H1 scale are : 133.53, 132.88, 132.47, 131.84, 131.22, 130.82 and 130.10. Here, we are following the development of the descending structure of April 30. The continuation of the upward movement is expected after the breakdown of the level of 131.84. In this case, the goal is 131.22. Upon reaching this level, we expect consolidation in the range of 131.22 – 130.82. For the potential value for the bottom, we consider the level of 130.10. Upon reaching which, we expect a pullback to the correction.

A short-term upward movement is possible in the range of 132.47 – 132.88. The breakdown of the last level will lead to in-depth movement. Here, the target is 133.53. This level is a key support for the downward structure.

The main trend is the downward structure of April 30

Trading recommendations:

Buy: 132.47 Take profit: 132.86

Buy: 132.90 Take profit: 133.50

Sell: 131.84 Take profit: 131.24

Sell: 130.80 Take profit: 130.10

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Fractal analysis of the main currency pairs on May 6