The Analytical Overview of the Main Currency Pairs on 2021.07.06

The EUR/USD currency pair

• Prev Open: 1.1857
• Prev Close: 1.1859
• % chg. over the last day: +0.02%

Because of the bank holiday in the US and low volatility on the markets, the EUR/USD currency pair remained at about the same level. 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 fundamental picture is in favor of EUR/USD quotes growth now.

• Support levels: 1.1847, 1.1809
• Resistance levels: 1.1911, 1.1973, 1.2002, 1.2050, 1.2109, 1.2144, 1.2174, 1.2212

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.

• – Germany ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
• – Europe ZEW Economic Sentiment (m/m) at 12:00 (GMT+3);
• – Eurozone Retail Sales (m/m) at 12:00 (GMT+3);
• – US ISM Services PMI (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3817
• Prev Close: 1.3838
• % chg. over the last day: +0.15%

The GBP/USD currency pair increased by 0.15% on Monday. 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 fundamental picture is in favor of GBP/USD quotes growth now.

• Support levels: 1.3935, 1.3767
• Resistance levels: 1.4002, 1.4075, 1.4101, 1.4138, 1.4191

The GBP/USD trend is bearish on the H1 timeframe. But the price is moving to the priority change level. Buyers’ pressure now exceeds sellers’ pressure. The MACD indicator is in the positive zone with signs of divergence. 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 1.3922 resistance level and consolidates above, the bearish scenario is likely to be canceled.

• – UK Construction PMI (m/m) at 11:30 (GMT+3).

The USD/JPY currency pair

• Prev Open: 110.94
• Prev Close: 110.97
• % chg. over the last day: +0.03%

The futures on the Japanese yen began to show signs of growth, while the dollar index is declining. With the continuing soft monetary policy from the Fed, such a fundamental picture plays in favor of a decrease in USD/JPY quotes.

• Support levels: 111.06, 111.48, 110.73, 110.47, 109.83, 109.62, 109.31
• Resistance levels: 112.18

But from the point of view of technical analysis, the trend remains bullish. The price is trading above the priority change level, but sellers’ pressure is increasing. Under such market conditions, given the divergence on the MACD indicator, traders are better to look for buy trades from the support levels. It is best to look for entry points on intraday timeframes for sell trades.

Alternative scenario: if the price falls below 110.47, the general downtrend is likely to be resumed.

The USD/CAD currency pair

• Prev Open: 1.2320
• Prev Close: 1.2337
• % chg. over the last day: +0.14%

The USD/CAD currency pair increased by 0.14% by the end of the day. The USD/CAD quotes are highly dependent on two factors now: the dollar index and oil prices. On Friday, the dollar index fell sharply, and as a result, the USD/CAD quotes went down against the backdrop of rising oil prices. The overall fundamental picture remains mixed, with a slight advantage in favor of a stronger Canadian dollar.

• Support levels: 1.2312, 1.2251, 1.2190, 1,2148 1.2121, 1.2096
• Resistance levels: 1.2347, 1.2404, 1.2478, 1.2519

Technically, the trend remains bullish, as the price is above the priority change level. But the pair 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 trades from the support levels. Traders can also look for entry points on intraday timeframes for sell positions, but only with short targets.

Alternative scenario: if the price breaks down through the 1.2260 support level and fixes below, the downtrend is likely to be resumed.