The Analytical Overview of the Main Currency Pairs on 2021.04.06

The EUR/USD currency pair

• Prev Open: 1.1757
• Prev Close: 1.1812
• % chg. over the last day: +0.47%

The euro rose sharply against the US dollar after Janet Yellen’s comments on the need to adhere to a soft monetary policy for the coming years. The yield on 2-year US bonds fell along with the USD.

• Support levels: 1.1704, 1.1688
• Resistance levels: 1.1889, 1.1990

The main scenario for EUR/USD is buying. The technical indicators on the H1 timeframe have changed dramatically compared to the previous week. The price has confidently fixed itself above the moving averages, and the ADX shows a significant reaction to the growth of quotations. Convergence has formed on the MACD.

Alternative scenario: if the price consolidates below the level of 1.1760, the pair may return to the decline to 1.1704.

• – The Job Openings and Labor Turnover Survey (JOLTS) (Feb) at 17:00 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3822
• Prev Close: 1.3897
• % chg. over the last day: +0.54%

Supported by the US dollar correction, the sterling showed the most significant gains against the dollar among the group 10 currencies. It confirms the long-term bullish sentiment of the pair.

• Support levels: 1.3705, 1.3680
• Resistance levels: 1.3929, 1.4000

The main scenario for GBP/USD is buying. The price is confidently holding above the moving averages, and convergence has formed on the MACD. The ADX indicates strong bullish pressure. However, it should be noted that the last northern impulse showed a decrease in the trend potential, which may indicate a halt in growth.

Alternative scenario: if the pair consolidates below 1.3826, the pound may decline to 1.3705.

The USD/JPY currency pair

• Prev Open: 110.67
• Prev Close: 110.17
• % chg. over the last day: -0.45%

The dollar-yen pair reversed direction sharply in the short term amid falling Asian stocks. After a message from the National Bank of China about the need to limit lending, demand for defensive assets, including the Japanese yen, increased.

• Support levels: 109.97, 109.38
• Resistance levels: 110.98, 111.71

The main scenario is selling. All technical indicators have redirected to the south. The price has consolidated below the moving averages, and convergence has formed on the MACD. The ADX indicates strong bearish pressure.

An alternative scenario implies the price fixing above 110.50. In this case, the pair may resume growth to 109.98.

• – The Job Openings and Labor Turnover Survey (JOLTS) (Feb) at 17:00 (GMT+3).

The USD/CAD currency pair

• Prev Open: 1.2575
• Prev Close: 1.2521
• % chg. over the last day: -0.43%

Despite the decline in oil prices, the pair dropped following the fall of the US dollar. WTI crude oil has lost $2.80 per barrel, which may limit the decline in USD/CAD.

• Support levels: 1.2574, 1.2446
• Resistance levels: 1.2594, 1.2629

The main scenario is selling. The technical characteristics are almost indistinguishable from the G10 currencies, except for the MACD indicators. The price has consolidated below the moving averages, and the ADX indicates a substantial rise in the southern potential. However, a divergence has formed on the MACD, which casts doubt on a further decline.

Alternative scenario: if the price gains a foothold above 1.2595, the pair may resume growth to 1.2629 or higher.