by JustForex
Against the background of positive nonfarm payroll data, the US currency unexpectedly fell on Friday, triggering a sharp rise of the EUR/USD currency pair (inverse correlation). The price returned to a wide range of 1.2134-1.2243 on the impulsive move, forming a false breakdown zone below.
The price has quickly returned to the moving average line, and the MACD indicator is in the positive zone again. The uptrend is likely to resume, but only if the price breaks out through the priority change level of 1.2112. Under such market conditions, traders are better to look for both sell trades from the nearest resistance levels and buy trades from support levels within the upward momentum.
Alternative scenario: if the price breaks out through the 1.2212 resistance level and fixes below, the general uptrend is likely to resume.
Unlike the euro, the British pound managed to hold above the change priority level and maintain an uptrend. On Friday, the price returned to the wide range of 1.4110-1.4207 on the impulse move, forming a false breakdown zone below.
The price is trading near the moving average, and the MACD indicator has become inactive. The trend of the GBP/USD currency pair remains bullish, as the price is above the priority change level. Under such market conditions, traders are better to look for buy trades from the support levels with the targets on the opposite boundary of the corridor.
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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.
The USD/JPY currency pair is highly correlated with the dollar index. On Thursday, the price fell by 0.68% and lost almost all of Thursday’s gains. If such a bearish dynamic continues, the uptrend will most likely be broken.
At the moment, the mid-term trend is still bullish as the price is above the priority change level of 109.14. The price is trading near the moving average, and the MACD indicator has gone into the negative area. Under such market conditions, traders are better to look for both buy trades from the nearest support levels and sell trades from resistance levels within the bearish momentum.
Alternative scenario: if the price falls below 109.14, the general downtrend is likely to resume.
The USD/CAD currency pair decreased by 0.29% on Friday. The Canadian dollar showed the greatest resistance to changes in the dollar index among all major currencies. Buyers are acting much more aggressively, and the price is moving towards the priority change level.
Technically, the trend remains bearish. But taking into account that the local downtrend line was broken by an impulsive move, the current momentum is strictly bullish. Under such market conditions, traders are better to look for both sell trades from the nearest resistance levels and buy trades from support levels, but only on intraday timeframes within the upward momentum. But it should be noted that the price is still 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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