Intraday Forex Wednesday, May 19 (EURUSD, USDJPY, etc.) The dollar steadied against major currencies as traders awaited the Fed's minutes.


Hi everyone. This observation is made around 5:15 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

Global stocks dipped on Wednesday as uncertainties over inflation prompted investors to reduce exposure to riskier assets, while rising virus infections in the region also hampered the bet on the global recovery.

Meanwhile, the dollar traded cautiously against currencies on Wednesday as traders awaited U.S. Federal Reserve minutes released later today, for the next indications about where monetary policy is headed.
Bitcoin tumbled after China banned its financial institutions from offering services related to cryptocurrency assets.

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  • The euro reaching for its 3-month high of $1.22425 and now last traded at $1.22319.​
  • The euro strengthened as a faster pace of vaccine inoculations in the Eurozone has boosted confidence in the Eurozone recovery. (Germany and Spain expecting to inoculate 75% of their adult populations within the next 3 months.)​
  • The dollar dwindled as Treasury yields stalled amid renewed expectations that the U.S. will not hike interest rates anytime soon.​
  • The Fed will release minutes from its most recent meeting later today, which may give indications about where monetary policy is headed this year. Fed policymakers have said this is a temporary spike and reiterated that they expect interest rates to remain low, which has taken some steam out of the dollar, but not all are convinced by the Fed’s persuasion.​
  • The EUR/USD has broken a key resistance level at the 1.217 price line which indicates strong bullish conviction. The question is whether the bullish move will continue. Momentum indicators show the pair testing overbought conditions.​
Important Levels to Watch for:​
  • Resistance line of 1.22535 and 1.22849.​
  • Support line of 1.21521 and 1.21207.​

  • The U.S. dollar stood at 108.958 yen, bounced back after recorded its lowest since May 12. The currency pair has been locked in a narrow range in recent trading.​
  • While a lower T-note yields weakened the dollar’s interest rate differentials and was bearish for the dollar, concerns about COVID-19 cases continue to weigh on Asian foreign exchange trading.​
  • The USD/JPY continues to oscillate within the uptrend although oscillations have been narrowing. The ascending trendline will remain as a key support level for the pair. Momentum indicators are bullish, with MACD languishing around the zero line.​
Important Levels to Watch for Today:​
  • Resistance line of 109.282 and 109.467.​
  • Support line of 108.684 and 108.499.​

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