Weekly Forex Analysis: 15-19 May 2023

DXY

On the daily chart, DXY created a new demand zone around 101.069-101.825 levels and broke above the trend line with a strong bullish bias to the upside.

If price continues to show strong bullish evidence, we go all the way up to 105.148 level as a potential target for the DXY.

EURUSD

On the daily chart, EURUSD created a new supply zone around 1.09949-1.10971 levels and showed strong bearish evidence to the downside.

If price retraces back up to test this supply zone, we short to 1.07303 and 1.05619 levels as potential targets.

AUDUSD

On the daily chart, AUDUSD tested the supply zone around 0.67956-0.68483 levels and showed strong bearish evidence to the downside.

If price violates the demand zone around 0.65623-0.65927 levels and broke below it, the next potential target is 0.63716 level.

GBPUSD

On the daily chart, GBPUSD created a new supply zone around 1.25534-1.26822 levels and showed strong bearish evidence to the downside.

If price continues to move lower, the next potential targets are 1.22014 and 1.20285 levels.

USDCAD

On the daily chart, USDCAD is still moving sideways testing the demand zone around 1.32272-1.33250 levels and showed strong bullish evidence to the upside.

If price tests 1.36585 level and we get enough bearish price action, we short to 1.33250 level as a potential target.

USDCHF

On the daily chart, USDCHF tested the demand zone around 0.87567-0.88530 levels and showed some bullish evidence to the upside.

We expect price to go up and test the trend line before we can decide to go long. We need a clean break above the trend line and a newly formed demand zone to buy as soon as price retrace back down to it. If this scenario happens, the next potential target is 0.93383 level.

USDJPY

On the daily chart, USDJPY tested the demand zone around 132.009-133.736 levels and showed some bullish evidence to the upside.

If price continues to move higher, the next potential targets are 140.288 and 145.215 levels.

GBPJPY

On the weekly chart, GBPJPY tested the supply zone around 169.379-175.138 levels and showed some bearish evidence to the downside.

If price tests the demand zone around 165.393-166.756 levels and shows enough bullish price action to the upside, we go long to 169.379 and 183.398 levels as potential targets.

EURJPY

On the daily chart, EURJPY tested the demand zone around 145.696-146.426 levels and showed some bullish evidence to the upside.

If this zone holds and price breaks above the trend line, we go long to 150.079 level as a potential target.

XAUUSD

On the daily chart, Gold retested the supply zone around 2036.825-2067.478 levels and showed some bearish evidence to the downside.

If price breaks below 2000 level, the next potential targets are 1964.403 and 1919.837 levels.

If we take a look at the weekly chart, we see clearly that we have a triple top pattern. This is a good selling opportunity on Gold as we can sell right at the correction using fibonacci levels or a retest of the 2036.825 level. The long-term target is 1680 level.

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