by JustForex
The EUR/USD currency pair failed to break through the resistance level of 1.2243, and the price was slightly corrected, mainly due to the strengthening of the dollar index. Short-term support for the US currency was provided by the US Treasury Department, which held several treasury bond auctions yesterday. Such actions usually lead to the withdrawal of liquidity from the financial system, which is good for the dollar index.
The trend remains bullish. The price is trading above the moving average. The divergence on the MACD indicator has already been executed. Under such market conditions, it is better to look for buy trades from the support levels, relying on the continuation of the price growth.
Alternative scenario: if the price breaks down through the 1.2168 support level and fixes below, the general uptrend is likely to be broken.
Yesterday, the British pound unexpectedly fell on the impulse movement and returned to the wide corridor, forming a false break area above. The price also broke through the local uptrend line. The main reason for the fall is the strengthening of the dollar index. Also, the Governor of BoE Andrew Bailey said yesterday that economic recovery in the Foggy Albion could cause a substantial rise in inflation and lead to the tightening of monetary policy the following year.
For the GBP/USD currency pair, the trend remains bullish. The price is trading near the moving average, and the MACD indicator is in the negative zone. Under such market conditions, traders are better to look for buy trades from the nearest support levels. With a high probability, the price will go down to the lower boundary of the wide range of 1.4110-1.4207.
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Alternative scenario: if the price breaks through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.
On Tuesday, the USD/JPY currency pair formed a narrow flat. It is easy to notice that the buyers are pushing the price higher, relying on a breakout. If the price fixes above the resistance level of 109.64, the local upward momentum will resume.
At the moment, the mid-term trend is bullish. The price is above the moving average and the priority change level of 109.00. Under such market conditions, traders are better to look for buy trades from the support levels, relying on the continuation of the price growth.
Alternative scenario: if the price falls below 109.00, the general downtrend is likely to resume.
Yesterday, the USD/CAD currency pair tried to break through the support level of 1.2032 but failed to consolidate below. Buyers sharply pushed the price back, forming a false breakdown of the level.
The local downtrend line has not yet been broken, so the trend remains bearish. Given that the price formed a false breakdown and returned to the moving average on an impulse move, buyers behave more aggressively. Under such market conditions, traders are better to look for both sell trades from the nearest resistance levels and buy trades from the support levels, but only on intraday timeframes within the upside momentum. But it should not be missed that the price is inside a wide corridor of 1.2032-1.2137.
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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