by JustForex
The EUR/USD continues to move north after Friday’s impulse. The price has consolidated above the important level of 1.2059, which means a trade transition to the upper range and the cancellation of the southern corrective movement. At the same time, the long-term southern trend of the dollar index remains.
The main scenario for trading the EUR/USD is buying. Technical indicators have rearranged northward. The ADX continues to show increasing upside potential. The moving averages turned upwards.
Alternative scenario: if the price consolidates below the level of 1.2033, the pair may return to 1.1951.
Today, during the Asian session, the sterling has managed to break through an important resistance level, making the northern trend stable and long-term. The only disturbing thing is that the breakthrough occurred during the Asian session in conditions of low liquidity. A price exit above 1.3757 could be speculative and traders need to be vigilant.
The main scenario for the GBP/USD is trading sideways between 1.3757 and 1.3800. Despite the seemingly strong northward momentum, the ADX showed little reaction. The MACD also ignores the movement – a divergence has been formed on the chart. These are signs that a breakthrough of the key level may turn out false.
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Alternative scenario: if the pair consolidates above 1.3800, it is likely to continue rising to 1.3900. A breakthrough of 1.3757 will bring the pair back to the previous range.
The dollar-yen pair is showing a sudden reversal amid the falling dollar index and falling yields on major government bonds. The Japanese currency is growing, so are the defensive assets such as gold and the Swiss franc.
The main scenario is selling. The ADX rose sharply on the pair’s decline, indicating a likely reversal of the northern trend. Although, now the oscillator has reached the oversold area, and the price is in the area of the first support. In this case, a rollback is possible.
An alternative scenario implies the price-fixing above 105.36. In this case, the pair may rise to 105.68.
The Canadian dollar is showing robust growth amid continuing increases in oil prices. The H4 timeframe shows an increase in indicators in favor of bears in the USD/CAD, which indicates a stable mid-term southern trend. There are no fundamental drivers for the pair’s growth yet.
The main scenario is selling. The ADX on the H1 timeframe shows a high potential for a decline, while the oversold area is still far away. It means that the pair may not only reach the support level but also break it.
Alternative scenario: if the price manages to gain a foothold above 1.2781, the pair may resume its growth to the resistance level of 1.2844 or higher.
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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