by JustForex
The manufacturing PMI data was published yesterday. There were no surprises, no significant changes compared to the previous month. The economic climate in Europe is improving; the only question is whether Europe manages to avoid outbreaks of the new strain of Coronavirus, Delta, or not.
The trend is still bearish. The price is traded near the support level of 1.1847. There is still no initiative from buyers. The first signs of divergence have appeared on the MACD indicator, on several timeframes, so the downside potential is limited. Under such market conditions, traders are better to look for both sell trades from the resistance levels and buy trades from the support levels, but only on intraday timeframes.
Alternative scenario: if the price breaks out through the 1.2144 resistance level and fixes above, the general uptrend is likely to resume.
In the United Kingdom, the growth rate of the Manufacturing PMI index is slowing down. Coronavirus restrictions continue to have a strong impact on economic indicators. The situation is still not improving significantly, so many economists believe that British Prime Minister Boris Johnson may postpone the opening of the economy for another month.
The GBP/USD trend is bearish on the H1 timeframe. The price is trading below the moving average, while the MACD indicator is in the negative zone, but it shows signs of reversal. 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.
Free Reports:
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 continues to grow steadily. The price has reached a three-month high, and there are all preconditions for further growth up to the weekly resistance level of 112.18. There is a high direct correlation between USD/JPY and the US stock indices now.
The trend remains bullish. The price is trading above the moving average. The MACD indicator is in the overbought zone, but there are first signs of divergence. Under such market conditions, traders are better to look for buy trades from support levels, but after a slight downward correction. The price has deviated strongly from the moving average and reached resistance levels, so sell positions can be considered too, but only on intraday timeframes.
Alternative scenario: if the price falls below 109.83, the general downtrend is likely to resume.
The USD/CAD currency pair increased by 0.33% by the end of the day. The USD/CAD exchange rate is highly dependent on two factors: the dollar index and the oil quotes. And as long as the dollar index is rising, the price of USD/CAD will follow it. But as soon as the growth of the dollar stops on the background of rising oil prices, the USD/CAD quotes will go down sharply.
Technically, the trend remains bullish. The price is trading above the moving average, and the MACD indicator is in the positive zone, but there are the first signs of divergence. Under such market conditions, it is best to trade on the lower timeframes. Buyers may look for buy trades from support levels. Traders can look for entry points on intraday timeframes for sell positions, but only with short targets because it is trading against the trend.
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.
By JustMarkets On Friday, US stock indices closed in the green zone amid two powerful…
By RoboForex Analysis Department The EURUSD pair is starting Monday's trading session near 1.1468. This…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro The latest update for the weekly Commitment of Traders (COT) report was released…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
By InvestMacro Here are the latest charts and statistics for the Commitment of Traders (COT)…
This website uses cookies.
