by JustForex
Comments from ECB officials seriously weakened the euro’s upward trend. After the correction, the EUR/USD currency pair formed a narrow flat within a wider range. If the price goes up from this flat, the uptrend will continue. If the price goes down by the impulsive move, the alternative scenario will be activated. But given that the accumulation is formed in front of the support level, the probability of a breakdown is higher.
The trend is bullish as the price is still above the priority change level of 1.2168. Now the price is accumulating near the moving average. Under such market conditions, it is better for traders to stay out of position and wait for the price to start moving in one direction.
Alternative scenario: if the price breaks down through the 1.2168 support level and fixes below, the general uptrend is likely to be broken.
There are growing expectations for an interest rate hike from the Bank of England (BoE) in the UK. At the end of Thursday, the British pound has added 0.56% and looks stronger than the euro. The price is now holding near a 3-month high.
The trend of the GBP/USD currency pair remains bullish. The price is above the moving average, and the MACD indicator is in the positive area with no signs of reversal. Yesterday, at the end of the trading session, there was an attempt to break through the 1.4110 resistance level and break out of the wide range upwards. But the buyers failed to pass this level at the first attempt. Traders are better to look for buy trades on intraday timeframes.
Alternative scenario: if the price breaks down through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.
On Thursday, the USD/JPY currency pair broke through the priority change level and activated an alternative scenario. The mid-term downtrend is broken.
At the moment, the mid-term trend has changed to bullish, but the price has strongly deviated from the moving average, and the MACD has grown to its maximum values. Under such market conditions, traders should expect a correction, as the momentum potential is already weak. Traders are better to look for long positions from the support levels.
Alternative scenario: if the price falls below 109.00, the general downtrend is likely to resume.
On Thursday, the USD/CAD currency pair failed to break through the priority change level of 1.2138 and corrected lower. Now the price has formed a wide range of 1.2032-1.2137. A breakout from this range will activate an alternative scenario and break the medium-term downward dynamics.
At the moment, the price is trading below the middle line, but the local trend line does not allow the sellers to lower the price below. Under such market conditions, traders are better to look for trades on intraday timeframes. But it is worth opening a sell position only after a breakdown of the local trend line.
Alternative scenario: if the price breaks out through the 1.2137 resistance level and fixes above, a local corrective uptrend is likely to form.
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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