The Analytical Overview of the Main Currency Pairs on 2021.08.17

The EUR/USD currency pair

• Prev Open: 1.1793
• Prev Close: 1.1775
• % chg. over the last day: -0.15%

Yesterday, the US Treasury Department held a Treasury bonds auction, which led to the absorption of liquidity from the banking system, which, in its turn, led to temporary support of the US dollar. As a result, the EUR/USD quotes slightly declined as the euro has an inverse correlation to the dollar index.

• Support levels: 1.1754, 1.1706, 1.1609
• Resistance levels: 1.1799, 1.1817, 1.1854, 1.1894, 1.1934, 1.1969

From a technical point of view, the general trend on the EUR/USD currency pair is bearish. Now the price is trading near the moving average, which means the price is balanced. The MACD indicator has become inactive. Under such market conditions, it is better to look for the sell deals from the resistance levels after sellers show initiative. Buy trades can be considered only from the support levels within the local upward movement.

Alternative scenario: if the price breaks through the 1.1854 resistance level and fixes above, the mid-term uptrend will likely resume.

• – Eurozone GDP (q/q) at 12:00 (GMT+3);
• – US Retail Sales (m/m) at 15:30 (GMT+3);
• – US Industrial Production (m/m) at 16:15 (GMT+3);
• – US Fed Chair Powell’s Speech at 20:30 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3862
• Prev Close: 1.3835
• % chg. over the last day: -0.19%

The British pound decreased slightly due to the temporary strengthening of the dollar index. A lot of macroeconomic statistics will be released in the UK today, so volatility on currency pairs with GBP will be higher during the European session.

• Support levels: 1.3802, 1.3772, 1.3714, 1.3676 ,1.3641, 1.3614, 1.3525
• Resistance levels: 1.3886, 1.3935, 1.4002, 1.4075, 1.4101

The trend of the GBP/USD currency pair is bullish on the hourly time frame. The price rebounded from the support level, where buyers demonstrated the reaction. The MACD indicator has become negative again, which indicates that the sellers’ pressure is high. Under such market conditions, traders are better to look for the buy trades from the zone where the buyers show initiative. Sell positions can be considered from the resistance levels and only on intraday time frames.

Alternative scenario: if the price breaks through the 1.3714 support level and consolidates below, the bearish scenario is likely to resume.

• – UK Average Earnings Index (m/m) at 09:00 (GMT+3);
• – UK Claimant Count Change (m/m) at 09:00 (GMT+3);
• – UK Unemployment Rate (m/m) at 09:00 (GMT+3).

The USD/JPY currency pair

• Prev Open: 109.61
• Prev Close: 109.26
• % chg. over the last day: -0.32%

Yesterday, the Japanese yen strengthened slightly against the dollar on the back of a positive Q2 GDP report. Industry Activity Index has increased by 2.3% in the last month. As a result, the USD/JPY currency pair has reached a priority change level.

• Support levels: 109.19, 108.65
• Resistance levels: 109.43, 110.04, 110.34, 110.66, 110.95, 111.48

The main trend on the USD/JPY currency pair is bullish. But the price is trading below the moving average line and has reached the priority change level. The MACD indicator is negative, but there are signs of sellers’ weakness. Under such market conditions, it is better to look for buy positions from the priority change level after the buyers show initiative. Sell positions should be considered only on the lower time frames from the zone where the sellers show initiative.

Alternative scenario: if the price falls below 109.19, the uptrend is likely to be broken.

• – Japan Tertiary Industry Activity Index (m/m) at 07:30 (GMT+3).

The USD/CAD currency pair

• Prev Open: 1.2514
• Prev Close: 1.2574
• % chg. over the last day: +0.48%

The Canadian dollar is highly dependent on the performance of the dollar index and oil price performance. Yesterday, at the end of the day, oil slightly decreased, and the dollar index went up, which was the reason for the USD/CAD quotes growth.

• Support levels: 1.2554, 1.2518, 1.2471, 1.2425, 1.2370, 1.2312
• Resistance levels: 1.2602, 1.2671, 1.2787, 1.2951

In terms of technical analysis, the trend on the USD/CAD currency pair is bearish. But the local trend is bullish. Now the price has strongly deviated from the moving average. Under such market conditions, it is best for traders to look for the sell positions from the resistance levels after the seller’s initiative. Buy positions should be considered intraday from the support levels within the local upward movement.

Alternative scenario: if the price breaks through the 1.2671 resistance level and fixes above, the uptrend is likely to be resumed.