by JustForex
The euro rose against the US dollar on the back of negative data on the labor market. Following the data release, the Treasury yield fell to 1.62%, which supported the bulls in the pair. In addition, the dovish comments of Jerome Powell and Fed’s board member James Bullard put additional pressure on the dollar.
The main scenario for EUR/USD is cautious buying. The technical picture looks bullish. The MACD is above zero, but divergence has formed, which indicates an approaching correction. The ADX showed a low reaction to the northern impulse, indicating a decrease in bullish pressure.
Alternative scenario: if the price consolidates below the level of 1.1836, the pair may return to the decline to 1.1704. A breakout of 1.1915 would indicate continued growth.
The sterling declined on Thursday, despite the fall in the dollar index. It indicates the British currency’s weakness, which may show a steep peak in the event of a correction in the US dollar. The pressure is still coming from the AstraZeneca vaccine situation, which could undermine the UK’s vaccination program.
The main scenario for GBP/USD is selling. The pair has come close to the first support level. As long as the price is below the moving averages, the risk of a breakdown is high. But ADX shows a decrease in the potential of the southern trend, and divergence has formed on the MACD. It indicates a possible temporary stop in the southern movement.
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Alternative scenario: if the pair consolidates above 1.3800, the pound may move upward to 1.3848.
On Thursday, the dollar-yen pair continued to decline following the dollar index and the American treasuries, the yield of which fell to 1.62%. The market is witnessing an increase in demand for defensive assets, including gold, Swiss franc, and yen, which puts additional pressure on the pair.
The main scenario is selling. The price is still fixed below the moving averages. The MACD is below zero. And convergence has formed on the chart, which indicates a possible acceleration of the fall. At the same time, the ADX shows a decrease in trend potential. By a combination of factors, a moderate southern signal is observed.
An alternative scenario implies the price fixing above 109.90. In this case, the pair may resume growth to 110.32.
The pair continues to trade in a narrow sideways range, as oil quotes have stabilized around $59 per barrel. The slight decrease was due to the continuing decline in the dollar index.
The main scenario is trading in a sideways range between 1.2554 and 1.2629. Specifications are mixed. The price is stuck between moving averages. The MACD is near zero. The ADX shows a strong reaction to the decline in quotations, which indicates a probable risk of a breakdown of the first support level.
Alternative scenario: if the price consolidates below 1.2554, the pair may resume its decline to 1.2501. A breakout of 1.2629 would indicate growth to 1.2646 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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