by JustForex
The EUR/USD currency pair began to show the first signs of a reversal. Friday’s labor market data showed a better-than-expected figure, but the unemployment rate remained high. On this background, the dollar index corrected lower, which played in favor of a slight strengthening of the European currency.
The trend is still bearish. The price is traded near the support level of 1.1847. However, the buyers showed initiative. Given the divergence on the MACD indicator, traders are better to look for buy trades from the support levels, but only on intraday timeframes. There is no optimal entry point for short positions now.
Alternative scenario: if the price breaks out through the 1.1972 resistance level and fixes above, the general uptrend is likely to be resumed.
The GBP/USD currency pair increased by 0.42% on Friday. The British currency looks more confident than the euro, even though there are still strict restrictions in the United Kingdom due to the outbreak of the Delta coronavirus.
The GBP/USD trend is bearish on the H1 timeframe. The price is trading below the moving average, but there is an initiative from the buyers’ side, and the MACD indicator has 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.
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Alternative scenario: if the price breaks out through the 1.3922 resistance level and consolidates above, the bearish scenario is likely to be canceled.
The USD/JPY currency pair corrected lower on Friday amid a drop in the dollar index. The price reached the 111.06 support level, where the buyers managed to defend their positions. A breakdown of 111.06 will open the road to the next support level of 110.73.
The trend remains bullish. The price is trading above the moving average. But the MACD indicator falls below zero. Under such market conditions, traders are better to look for buy trades from the support levels. There is no optimal entry point for short positions right now.
Alternative scenario: if the price falls below 110.47, the general downtrend is likely to be resumed.
The USD/CAD currency pair decreased by 0.98% by the end of the day. The quotes of USD/CAD are highly dependent on two factors: the dollar index and oil prices, as the Canadian dollar is a commodity currency. On Friday, the dollar index fell sharply, and as a result, the USD/CAD quotes went down against the backdrop of rising oil prices.
Technically, the trend remains bullish. But the price is trading below the moving average now. The MACD indicator is in the negative zone, with no signs of reversal. Under such market conditions, it is best to trade on lower timeframes. Buyers may look for buy trades from the 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 1.2260 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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