The Analytical Overview of the Main Currency Pairs on 2021.06.08

The EUR/USD currency pair

• Prev Open: 1.2159
• Prev Close: 1.2189
• % chg. over the last day: +0.25%

The fundamental picture for the European currency is positive. The vaccination rate in Europe is high. The dollar index is weak, and the US government is not going to cut its stimulus programs. All these factors support the euro. Europe will report on GDP for the quarter today.

• Support levels: 1.2180, 1.2134, 1.2112, 1.2074, 1.2026, 1.2002, 1.1957
• Resistance levels: 1.2212, 1.2243, 1.2311

The price is trading near the moving average line, and the MACD indicator is in the positive area with no signs of reversal. 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 above, the general uptrend is likely to resume.

• – Germany ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
• – Eurozone ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
• – Eurozone Gross Domestic Product (q/q) at 12:00 (GMT+3);
• – US Trade Balance (m/m) at 15:30 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.4149
• Prev Close: 1.4179
• % chg. over the last day: +0.21%

With the dollar’s weakness and the fact that the London Interbank Offered Rate (LIBOR) is at its lowest level, the British currency is strengthening.

• Support levels: 1.4110, 1.4075, 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
• Resistance levels: 1.4191, 1.4212, 1.4338

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 wide corridor with the 1.4107-1.4212 range.

Alternative scenario: if the price breaks down through the 1.4075 support level and consolidates below, the bullish scenario is likely to be canceled.

The USD/JPY currency pair

• Prev Open: 109.54
• Prev Close: 109.25
• % chg. over the last day: -0.26%

Japan has reported GDP for the quarter. The actual value of -1.0% was better than the expected -1.2%, but the dynamics show that the economic situation in Japan is still far from the pre-coronavirus level.

• Support levels: 109.35, 109.13, 108.66, 108.44, 108.19, 107.77
• Resistance levels: 109.83, 110.09 110.51, 110.73

At the moment, the mid-term trend is still bullish as the price is above the priority change level of 109.13. The price is trading near the moving average, and the MACD indicator has become inactive. 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 109.13, 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: 1.2071
• Prev Close: 1.2081
• % chg. over the last day: +0.08%

The USD/CAD currency pair formed a narrow flat in the middle of a wider corridor with the range OF 1.2032-1.2137. At the same time, the price is trading near the moving average, which makes it difficult to find good entry points on the H1 timeframe.

• Support levels: 1.2069, 1.2032, 1.1944
• Resistance levels: 1.2137, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519

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. But it should be noted that the price is still inside a wide corridor.

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

• – Canada Trade Balance (m/m) at 15:30 (GMT+3).