The Analytical Overview of the Main Currency Pairs on 2021.05.11

The EUR/USD currency pair

• Prev Open: 1.2159
• Prev Close: 1.2127
• % chg. over the last day: -0.26%

The EUR/USD currency pair was flat on Monday. Most of the time the price moved sideways and only at the end of the American session it went down, breaking through the support level of 1.2150.

• Support levels: 1.2108, 1.2074, 1.2027, 1.2002, 1.1957, 1.1835
• Resistance levels: 1.2150, 1.2176, 1.2212, 1.2243

At the moment, there is a pullback down within the main uptrend. Therefore, traders should focus on buy deals from the support levels near the trend line or near the moving average.

Alternative scenario: if the price breaks down through the 1.2074 support level and holds below, the general uptrend is likely to be broken.

• – European ZEW Economic Sentiment (m/m) at 12:00 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3999
• Prev Close: 1.4116
• % chg. over the last day: +0.83%

The British pound looks very strong. On Monday, the GBP/USD currency pair added another 0.83% and reached the daily resistance level, where an active struggle between the buyers and sellers began.

• Support levels: 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
• Resistance levels: 1.4126, 1.4207

At the moment, the sellers managed to bring the price back below the level of 1.4126. Considering the price deviation from the moving average, traders should expect a corrective down wave to the support levels.

Alternative scenario: if the price breaks down through the 1.3913 support level and holds below, the bullish scenario is likely to be canceled.

• – UK BOE Governor Andrew Bailey Speaks at 17:30 (GMT+3).

The USD/JPY currency pair

• Prev Open: 108.54
• Prev Close: 108.83
• % chg. over the last day: +0.26%

On Monday, the USD/JPY currency pair traded in a narrow range. At the end of the Asian session, the buyers tried to push the price higher, but the sellers protected their levels.

• Support levels: 108.44, 108.19,107.77, 107.47, 107.04
• Resistance levels: 108.87, 109.01, 109.40, 109.64, 109.95, 110.51

The price is still trading below the moving average. The MACD is in the negative area and is not active for now. Under such market conditions, it is possible to work in both directions, “long” from the support or “short” from the resistance levels. But if the dollar index continues to fall, the USD/JPY will form a mid-term downtrend.

Alternative scenario: if the price drops below 108.44, the general downtrend is likely to resume.

The USD/CAD currency pair

• Prev Open: 1.2117
• Prev Close: 1.2104
• % chg. over the last day: -0.11%

The downward movement on the USD/CAD started to slow down. The price has approached the support level (the 4 years price minimum) and might bounce off soon.

• Support levels: 1.2075
• Resistance levels: 1.2137, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519, 1.2618

The trend remains bearish for USD/CAD. But the MACD indicator is already signaling about 2 divergences (mid-term and local). It is too early to look for long positions, as buyers have not yet shown initiative. Also, it is too late to open short deals, as the support level is ahead. Traders should wait or trade intraday timeframes.

Alternative scenario: if the price breaks through the 1.2321 resistance level and holds above, a local corrective uptrend is likely to form.