by JustForex
The EUR/USD currency pair formed a narrow flat. Compared to the previous day, the situation is almost unchanged. German IFO data showed that the business climate in Europe’s largest economy is improving, and the economy is recovering from the pandemic.
The price is trading above the level of 1.1920 but below the moving average line. The MACD indicator is inactive. The trend is still bearish, but sellers’ pressure is weak. Under such market conditions, traders can look for both sell trades from resistance levels and buy trades from support levels with short targets.
Alternative scenario: if the price breaks out through the 1.2144 resistance level and fixes above, the general uptrend is likely to resume.
The GBP/USD currency pair declined slightly by the end of the day. Yesterday, the Bank of England reported on its monetary policy. As expected, the interest rate remained unchanged. But due to the growing number of cases of new Delta coronavirus (up 40% only yesterday), investors are cautious about the prospects of the British economy.
The GBP/USD trend is bearish on the H1 timeframe. The price has returned to the moving average, while the MACD indicator has become inactive. 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 out through the 1.4101 resistance level and consolidates above, the bearish scenario is likely to be canceled.
The USD/JPY currency pair formed a trading corridor with the 110.73-111.09 range. Manufacturing activity in Japan has fallen to its lowest level in 4 months. The economic slowdown in Japan continues, but the inflation rate remains at a very low level. The fundamental picture remains mixed as both the dollar index and the Japanese yen are showing weakness at the moment.
The trend remains bullish. The price is trading above the moving average. The MACD indicator has become inactive. Under such market conditions, traders are better to look for both buy trades from support levels and sell trades 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 remained at the same level as yesterday. Now the instrument is beginning to form a flat. The fundamental background remains mixed, with a slight advantage to the strengthening of the Canadian dollar, i.e., the fall of USD/CAD quotes.
Technically, the trend remains bullish. Now the price is trading near the moving average, and the MACD indicator has become inactive. Under such market conditions, it is best to trade on the lower timeframes. Buyers may look for buy trades from support levels. There are no optimal entry points for sell trades 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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