The Analytical Overview of the Main Currency Pairs on 2021.05.18

The EUR/USD currency pair

• Prev Open: 1.2143
• Prev Close: 1.2151
• % chg. over the last day: +0.07%

On Monday, the EUR/USD currency pair continued to rise. Yesterday, the US Treasury bond auction was held by the Treasury Department. Increased liquidity in the financial system is playing in favor of the European currency.

• Support levels: 1.2138, 1.2115, 1.2074, 1.2026, 1.2002, 1.1957, 1.1835
• Resistance levels: 1.2176, 1.2212, 1.2243

According to the technical analysis, the trend is still bullish. The price is trading above the moving average, but there is a divergence on the MACD indicator. This means that the traders should not expect a rapid price increase.

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

• – Eurozone Gross Domestic Product (q/q) at 12:00 (GMT+3);
• – US Building Permits (m/m) at 15:30 (GMT+3);
• – ECB President Lagarde Speaks at 17:00 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.4093
• Prev Close: 1.4138
• % chg. over the last day: +0.32%

The British pound is showing strength again. On Monday, the price confidently broke out through the resistance level of 1.4110 and held above. Important macroeconomic statistics on unemployment in Britain are expected today. Positive data may drive the price even higher.

• Support levels: 1.4110, 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
• Resistance levels: 1.4207

Technically, the trend remains bullish. The price is still above the moving average and the MACD indicator is in the positive area with no signs of divergence. The best strategy for traders under such market conditions is to look for long positions from 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 Claimant Count Change (m/m) at 09:00 (GMT+3);
• – UK Unemployment Rate (m/m) at 09:00 (GMT+3);
• – UK BOE Governor Andrew Bailey Speaks at 17:00 (GMT+3).

The USD/JPY currency pair

• Prev Open: 109.25
• Prev Close: 109.23
• % chg. over the last day: -0.02%

The USD/JPY currency pair is slowly sliding to the moving average and to the important support level of 109.01. Japan has reported on GDP data today in the Asian session. The report was weak, but the price did not react significantly to this event.

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

Now the price is trading in a narrow range at the moving average level. The MACD indicator became inactive. Technically, as long as the price is above the support level of 109.01, the trend remains bullish. But amid the weakness of the dollar index, the price of USD/JPY may change its general trend.

Alternative scenario: if the price drops below 109.01, the general downtrend is likely to resume.

• – Japan Gross Domestic Product (q/q) at 02:50 (GMT+3).

The USD/CAD currency pair

• Prev Open: 1.2112
• Prev Close: 1.2070
• % chg. over the last day: -0.34%

The Canadian dollar started to strengthen again. As a result, the price fell to the support level of 1.2075 and broke it down this morning at the Asian session on Monday. This time there is no activity from the buyers, so the price is likely to go down.

• Support levels: 1.1944
• Resistance levels: 1.2075, 1.2137, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519

For USD/CAD, the general trend is still bearish. There is no sign of reversal on the MACD indicator, so the best strategy for traders is to look for sell deals from the resistance levels. It is better to forget about purchases, at least until the price breaks out through one resistance level.

Alternative scenario: if the price breaks out through the 1.2137 resistance level and holds above, a local corrective uptrend is likely to form.