by JustForex
The EUR/USD currency pair
- Prev Open: 1.1777
- Prev Close: 1.1761
- % chg. over the last day: -0.14%
The corrective northern pullback in the euro was interrupted by positive data on the US labor market. The pair closed the day in the red, and the government bond yield spread between German Bonds and American T-Notes indicates a possible continuation of the euro-dollar pair’s decline.
- Support levels: 1.1688, 1.1601
- Resistance levels: 1.1889, 1.1990
The main scenario for EUR/USD is trading in a sideways range. Technical indicators show the likely continuation of the flat trading since the MACD is near zero, and the price is between the moving averages. The ADX hardly reacted to the southern movement on Friday. But it should be noted that the fundamental data indicate a greater likelihood of a price decline.
Alternative scenario: if the price manages to gain a foothold above the level of 1.1815, the pair may start a corrective rise to 1.1889. A breakdown of 1.1688 will indicate the resumption of the southern movement.
- – The US ISM Non-Manufacturing Purchasing Managers’ Index (Mar) at 17:00 (GMT+3).
The GBP/USD currency pair
- Prev Open: 1.3830
- Prev Close: 1.3823
- % chg. over the last day: -0.05%
The pound-dollar pair remained almost unchanged on Friday. The reaction to the NFP data was significantly less than in the euro-dollar, which is partly due to a decrease in trading volume. But at the same time, the pound shows the strength of the bulls, as the price remains close to the weekly range’s upper level.
- Support levels: 1.3705, 1.3680
- Resistance levels: 1.3846, 1.3929
The main scenario for GBP/USD is trading sideways between 1.3846 and 1.3780. At the end of the week, technical indicators showed an increase in bullish pressure on the H1 timeframe. But with the opening of the Asian session on Monday, further gains were called into question, as the ADX fell to its lowest levels. The MACD fell to zero, and the price is between the moving averages.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Alternative scenario: if the pair consolidates above 1.3846, the pound may resume its growth to 1.3929. A breakdown of 1.3780 could trigger a further drop to 1.3705.
- – The US ISM Non-Manufacturing Purchasing Managers’ Index (Mar) at 17:00 (GMT+3).
The USD/JPY currency pair
- Prev Open: 110.61
- Prev Close: 110.68
- % chg. over the last day: +0.06%
The dollar-yen pair has maintained a northern direction. The stock market rallied on Friday, with the S&P 500 breaking records and bond yields continuing to rise. The dollar is also inclined to rise. All these factors provide strong support to the pair.
- Support levels: 109.38, 108.35
- Resistance levels: 111.71, 112.24
The main scenario is buying. Almost all technical indicators are in equilibrium. The MACD shows zero values, and the ADX is at the minimum. But as long as the price is above the moving averages, the likelihood of renewed growth in the pair increases.
An alternative scenario implies price fixing below 110.30. In this case, the pair could drop to 109.38.
- – The US ISM Non-Manufacturing Purchasing Managers’ Index (Mar) at 17:00 (GMT+3).
The USD/CAD currency pair
- Prev Open: 1.2543
- Prev Close: 1.2570
- % chg. over the last day: +0.22%
The Canadian dollar is showing a downward bias as the rise in oil prices has stopped. In the Asian session on Monday, WTI futures lost about $0.90, supporting the bulls in USD/CAD.
- Support levels: 1.2574, 1.2446
- Resistance levels: 1.2629, 1.2745
The main scenario is buying. The ADX shows the rise in bullish pressure, which increases the likelihood of a breakout of the first resistance level. The MACD has consolidated above zero, while the price is above the moving averages.
Alternative scenario: if the price manages to consolidate below 1.2560, the pair may resume its decline to 1.2466.
- – The US ISM Non-Manufacturing Purchasing Managers’ Index (Mar) at 17:00 (GMT+3).
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.
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
- Bitcoin hits an all-time high above $88,000. Oil remains under pressure Nov 12, 2024
- Brent Crude Stumbles as Market Sentiments Turn Cautious Nov 12, 2024
- Bitcoin hits new record high just shy of $82,000! Nov 11, 2024
- The Dow Jones broke the 44 000 mark, and the S&P 500 topped 6 000 for the first time. The deflationary scenario continues in China Nov 11, 2024
