by JustForex
The continued soft monetary policy from the US is negative for the dollar index and positive for the European currency. From a fundamental point of view, investors expect the EUR/USD quote to grow. A lot of macrostatistics from Europe will be released today.
The EUR/USD currency pair showed the first signs of initiative from the buyers. The price returned above the level of 1.1920. The MACD indicator is in the positive zone. But the trend is still bearish. Under such market conditions, traders can look for both sell trades from the resistance levels and buy trades from the support levels.
Alternative scenario: if the price breaks through the 1.2144 resistance level and fixes above, the general uptrend is likely to resume.
The situation on the GBP/USD currency pair remains unchanged. The acceleration of economic growth in the UK is still limited by the tight quarantine due to the new Indian COVID-19 strain. But considering the weakness of the dollar, the British currency will slowly strengthen.
The GBP/USD trend is bearish on the H1 timeframe. At the moment, the price is trading below the moving average. The MACD indicator returned to the positive zone. Under such market conditions, traders are better to look for both sell trades from the resistance levels and buy trades from the support levels on the intraday timeframes.
Alternative scenario: if the price breaks through the 1.4101 resistance level and consolidates above, the bearish scenario is likely to be canceled.
The USD/JPY currency pair increased by 0.39% at the end of the day. In the Asian session tonight, the growth continued. The price confidently broke out through 2 resistance levels, indicating a strong bullish pressure. The Japanese currency looks very weak now.
The trend remains bullish. The price is trading above the moving average, the MACD indicator is in the positive zone, but there are the first signs of divergence. Under such market conditions, traders are better to buy from support levels and to sell from resistance levels, but only on lower timeframes.
Alternative scenario: if the price falls below 109.83, the general downtrend is likely to resume.
The USD/CAD currency pair shows downward corrective movement within the uptrend. But the fundamental picture remains mixed. On the one hand, the Canadian dollar is a commodity currency and is correlated with oil prices, which show strong growth. On the other hand, continued soft monetary policy from the US weakens the dollar index. Therefore, as soon as the market reaction to the Fed’s statements is over, the experts believe the USD/CAD quotes to decline in the mid-term.
Technically, the trend remains bullish. The price is now trading above the moving average, and the MACD indicator is in the negative zone with no signs of reversal. Buyers should wait for the price to get to the support levels and then look for long trades. There are no optimal entry points for sell positions right now.
Alternative scenario: if the price breaks down through the 1.2190 support level and fixes below, the downtrend is likely to be resumed.
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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