The Analytical Overview of the Main Currency Pairs on 2021.05.06

The EUR/USD currency pair

• Prev Open: 1.2010
• Prev Close: 1.2005
• % chg. over the last day: -0.04%

The EUR/USD currency pair showed weak activity on Wednesday. The price is under the moving average and continues to slowly slide down. Buyers manage to hold the 1.2002 support level.

• Support levels: 1.2002, 1.1957, 1.1835
• Resistance levels: 1.2074, 1.2108, 1.2145, 1.2176, 1.2212, 1.2243

The MACD indicator keeps signaling a divergence. Considering the positive news from Europe about the acceleration of the vaccination, the market conditions are in favor of buyers, so traders should expect a rebound.

Alternative scenario: if the price breaks out through the 1.2108 level and holds above, the general uptrend is likely to continue.

• – ECB President Christine Lagarde Speaks at 14:25 (GMT+3);
• – US Unemployment Claims at 15:30 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3885
• Prev Close: 1.3908
• % chg. over the last day: +0.16%

The GBP/USD currency pair is trading in a narrow range. A bunch of important news from the UK is expected to shake up the price today. Considering that the buyers are pushing the price to the 1.3835 resistance level and no changes are planned in monetary policy, the price is likely to resume growth.

• Support levels: 1.3835, 1.3801, 1.3756, 1.3690
• Resistance levels: 1.3913, 1.3996, 1.4149

There is no optimal entry point for GBP/USD on the H1 timeframe right now. Traders need to wait for any of the participants to be active. The best strategy would be to either trade intraday local moves or stay out of position until the news is released.

Alternative scenario: if the price breaks out through the 1.3913 resistance level and holds above, the bullish scenario is likely to become active again.

• – UK Final Services PMI at 11:00 (GMT+3);
• – Bank of England Interest Rate Decision at 14:00 (GMT+3);
• – Asset Purchase Facility at 14:00 (GMT+3);
• – MPC Asset Purchase Facility Votes at 14:00 (GMT+3);
• – BOE Monetary Policy Report at 14:00 (GMT+3).

The USD/JPY currency pair

• Prev Open: 109.30
• Prev Close: 109.18
• % chg. over the last day: -0.11%

The USD/JPY currency pair continues to stay in a flat, without any changes. Japan and China are going back to work today after a long weekend, so traders should expect an increase in volatility.

• Support levels: 108.87, 108.44, 108.19,107.77, 107.47, 107.04
• Resistance levels: 109.49, 109.64, 109.95, 110.51

The price is still trading above the moving average, but the MACD indicator is completely inactive. Under such market conditions, the best strategy would be to trade intraday deals with short targets.

Alternative scenario: if the price drops below 108.44, the general downtrend will continue with a high probability.

The USD/CAD currency pair

• Prev Open: 1.2307
• Prev Close: 1.2265
• % chg. over the last day: -0.34%

The USD/CAD currency pair continues to trade in the range. Buyers are actively defending the 1.2270 support level. The price fails to break down and holds below. The MACD indicator is showing a divergence, so traders should expect a rebound.

• Support levels: 1.2270, 1.2165
• Resistance levels: 1.2321, 1.2388, 1.2414, 1.2519, 1.2618

The trend remains bearish on USD/CAD, but the movement has switched to a flat structure. Such scenario is likely to last till Friday, where the interest rate news is expected. The best strategy in a wide flat would be to trade from the borders of the corridor. But taking into account the bearish context, it makes more sense to look for sell positions from resistance levels, despite a possible rebound upwards.

Alternative scenario: if the price breaks through the 1.2414 resistance level and holds above, a local corrective uptrend is likely to form.