The Analytical Overview of the Main Currency Pairs on 2021.06.10

The EUR/USD currency pair

• Prev Open: 1.2172
• Prev Close: 1.2178
• % chg. over the last day: +0.05%

On Wednesday, the EUR/USD currency pair tried to break through the priority change level, but the sellers managed to defend their positions. As a result, the euro bounced back down to the nearest support level. At the moment, the price is trading in the middle of the wide 1.2134-1.2243 range. Today, the ECB will report on the interest rate. The rate is expected to remain unchanged, but the euro is likely to be sensitive to changes in analysts’ forecasts.

• Support levels: 1.2168, 1.2134, 1.2112, 1.2074, 1.2026, 1.2002, 1.1957
• Resistance levels: 1.2212, 1.2243, 1.2311

Technically, the global downward correction movement is not over yet. The price failed to break 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 the support levels.

Alternative scenario: if the price breaks out through the 1.2212 resistance level and fixes above, the general uptrend is likely to resume.

• – ECB Interest Rate Decision (m/m) at 14:45 (GMT+3);
• – ECB Monetary Policy Statement (m/m) at 14:45 (GMT+3);
• – ECB Press Conference at 15:30 (GMT+3);
• – US Consumer Price Index (m/m) at 15:30 (GMT+3);
• – US Core CPI (m/m) at 15:30 (GMT+3);
• – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
• – US 10-y Bond Auction at 20:01 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.4151
• Prev Close: 1.4112
• % chg. over the last day: -0.27%

The GBP/USD currency pair decreased by 0.27% on Wednesday. The sellers are pushing the price to the lower boundary of a wide corridor again. Taking into account the lack of response from the buyers, the price is very likely to decline.

• 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

At the moment, the price is trading below the moving average, and the MACD indicator in the negative area. The trend of the GBP/USD currency pair remains bullish, as the price is above the priority change level, but sellers’ pressure is stronger now. Under such market conditions, traders are better to look for both buy trades from the support levels and sell trades from the nearest resistance levels within the bearish momentum.

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: 109.49
• Prev Close: 109.63
• % chg. over the last day: +0.13%

The USD/JPY currency pair has formed a flat with the 109.18-109.63 range. The currency pair is in a contradictory situation right now, as both the dollar index and the Japanese yen are showing weakness. When both currencies show weakness, the price of the currency pair is usually trading in a corridor. Today’s US inflation data could trigger big moves of the USD/JPY price.

• Support levels: 109.63, 109.35, 109.18, 108.66, 108.44, 108.19, 107.77
• Resistance levels: 109.83, 110.09 110.51, 110.73

Technically, the mid-term trend is bullish as the price is above the priority change level of 109.18. The price is trading near the moving average while the MACD indicator is inactive. Under such market conditions, traders are better to look for both buy trades from the nearest support levels and sell trades from the resistance levels. But the buyers are more active now.

Alternative scenario: if the price falls below 109.18, the general downtrend is likely to resume.

The USD/CAD currency pair

• Prev Open: 1.2107
• Prev Close: 1.2106
• % chg. over the last day: -0.01%

The Central Bank of Canada kept its monetary policy unchanged. The USD/CAD currency pair did not react to this report. At the end of the day, the price closed at the same level.

• 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 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 the support levels, but only on intraday timeframes. Though, it should be noted that the price is still inside a wide corridor with the 1.2032-1.2137 range.

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