The EUR/USD currency pair

• Prev Open: 1.2268
• Prev Close: 1.2254
• % chg. over the last day: -0.11%

EUR/USD closed slightly lower on Friday. With the opening of the Asian session, a gap of 30 points was formed, and the pair continued to decline. The driver was the expectation of closing the borders of Germany and France with Great Britain. Information about the new mutation of the virus is forcing other EU countries to follow their example. Italy, the Netherlands, and Belgium are among them.

• Support levels: 1.2177, 1.2124
• Resistance levels: 1.2273

The main scenario: selling. Fear has appeared in the European market, which stimulates the strengthening of the dollar. The pair quickly fixed below the two moving averages SMA 50 and SMA 100. The MACD quickly moved to the negative zone, and the overall monthly chart for December indicated divergence, which strengthens the southern signal. The ADX reacts flabbily, which indicates further slow downward movement.

Alternative scenario: if the price can fix above the level of 1.2239, it is possible that the price will return to the maximum of 1.2273 and higher.

The GBP/USD currency pair

• Prev Open: 1.3578
• Prev Close: 1.3521
• % chg. over the last day: -0,42%

On Friday, traders were disappointed because of the lack of progress in the Brexit negotiations. The problems remained the same — the controversial issue of fishing. The sterling started a correction. In the Asian session, the pressure on the British currency increased significantly after information about the closure of the EU borders with Britain amid the aggravation of the situation with the coronavirus pandemic. It seems that the pound not only lost its drivers for growth but also received a portion of the bearish onslaught.

• Support levels: 1.3287, 1.3224
• Resistance levels: 1.3553, 1.3623

The main scenario: selling. The ADX shows a significant increase in the potential of the downtrend, which indicates that sales are strengthening. The signal about a change in direction that was received on Friday intensified. The MACD accelerated the movement in the negative direction on the hourly timeframe. The price fixed well below the two moving averages SMA 100 and SMA 50.

Alternative scenario: if the price fixes below 1.3520, the pair is likely to resume its growth.

• – United Kingdom CBI Industrial Orders (Dec) at 14:00 (GMT+2).

The USD/JPY currency pair

• Prev Open: 103.09
• Prev Close: 103.31
• % chg. over the last day: +0.21%

On Friday, the currency pair consolidated near the price level of 103.40 after a quick fall to the 102nd figure. The opening of the Asian session triggered a small jump northward due to the rise in the dollar index. But price fluctuations remain low. On the one hand, the dollar is pulling the pair up. But on the other hand, the fear in the market of risky assets makes investors seek refuge, which may influence the increase of the Japanese yen in price.

• Support levels: 103.26, 102.89
• Resistance levels: 103.93, 104.15

The main scenario is trading in a sideways range with little priority to buying. The northern impulse into the Asian session didn’t continue into the European one. For this pair, the entire news feed is mixed. The price position between the two moving averages SMA 50 and SMA 100 confirms the expectations of weak dynamics. The MACD is in the positive zone, but there are no signs of acceleration. The ADX level is also low but directed upwards.

An alternative scenario assumes a break-through of 103.26 and the development of a further fall.

The USD/CAD currency pair

• Prev Open: 1.2717
• Prev Close: 1.2781
• % chg. over the last day: +0.50%

After Friday’s consolidation near the annual minimums, the pair quickly moved to an uptrend. The growth driver is the growth of the dollar index and the correction in the oil market. After the reports of an aggravation of the situation with the coronavirus in Europe, leading to the closure of borders, the commodity indices declined in price. Oil quotes demonstrated a sharp decline, which exerted pressure on the Canadian dollar.

• Support levels: 1.2789, 1.2688
• Resistance levels: 1.3079, 1.3172

The main scenario is buying. Since the pair was declining during the entire December without significant pullbacks, the first resistance level turned out to be quite high. But if the southern impulse in the oil market continues, it will be quite possible to achieve it. After the triple divergence, the MACD has confidently fixed in the positive zone, which gives a signal for a deep correction. The ADX is weak and, possibly, there will be a slow rise during the day.

Alternative scenario: if the price can return below 1.2757, the southern trend will continue.