by JustForex
EUR/USD was the weakest pair at the end of Wednesday. The day closed in the red despite the negative dynamics of the dollar index. This indicates significant pressure from the bears and the need to be careful with the euro bulls. Perhaps this is due to the upcoming ECB meeting, which will be held today at the end of the European session.
The main scenario for trading EUR/USD is buying. Despite the apparent weakness of the euro compared to other currencies, the technical characteristics still show the likelihood of growth. The ADX still only reacts to the northern movement, demonstrating high growth potential. The MACD is holding above zero, and the price is fixed above the moving averages.
Alternative scenario: if the price manages to fix below the level of 1.2059, the pair may move to a decline to 1.1799.
The sterling is showing strong bullish potential on par with commodity currencies. Discussion of the plan to rescue the economy had a positive impact on the foreign exchange market. The Chancellor of the Treasury Rishi Sunak is expected to provide an assistance program that will keep workplaces for those on vacation during the quarantine period and pay salaries up to 80%.
The main scenario in GBP/USD is buying. Sterling renewed its highs and when the price fixes above 1.3716, the pair’s immediate resistance will lie at the spring 2018 levels at 1.4386. The technical specifications are showing strong bullish potential. The ADX shows that the pound is able to go about 80 more points before the first rollback.
Alternative scenario: if the pair fixes below 1.3622, the pair is likely to return to 1.3517.
It seems as if the yen has completely lost contact with the stock markets. The negative value of the close of the day turned out to be even greater than the dollar index showed. At the same time, the stock market was able to renew highs. A price fixation below the weekly range levels indicates a presence of bears in this pair.
The main scenario is sales. Specifications indicate continued southbound traffic. But the ADX is giving a weak signal. This suggests that if there is a decline – it will be very slow. Convergence has formed on the MACD, and there are no hints of stopping the fall yet.
The alternative scenario assumes the price-fixing above 103.77. In this case, the pair may be able to return to 104.20.
The stabilization of oil prices near the highs and the absence of hints from the Bank of Canada to increase economic stimulus are factors that significantly supported the Canadian dollar. The pair managed to break through an important support level and now threatens to go far down. If the dollar continues to lose ground, there will be almost nothing to prevent the Canadian dollar from strengthening against the USD.
The main scenario is sales. All technical specifications indicate continued southward movement. A triple convergence has formed on the MACD. The ADX can’t reach the short-term overvalued area, and the bearish potential remains high. The pair can go about 50 more points before the first rollback.
Alternative scenario: if the price can fix above 1.2713, the pair may return to 1.2797.
by JustForex
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
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