by JustForex
The Germany ZEW Economic Sentiment decreased to 26.5 from 40.4. ZEW Economic Sentiment for the Eurozone is also negative – 31.1 (previous – 42.7). All this suggests that the pace of economic recovery in Europe is slowing down. Investors shouldn’t also forget about the high inflation rate, so a lot will depend on the ECB meeting tomorrow.
From a technical point of view, the general trend of the EUR/USD currency pair is bullish, but there is also a corrective downward movement observed on the hourly time frame. The MACD indicator became negative. Under such market conditions, it is better to look for sell trades from the resistance levels, where sellers show initiative. Buy trades can be considered from the support levels near the moving average.
Alternative scenario: if the price breaks through the 1.1704 support level and fixes below, the mid-term uptrend will likely be broken.
The UK government plans to increase the National Insurance Tax to pay for social and health care services. A growing number of business groups and analytical centers oppose this decision since, due to labor shortages, such a move threatens to ruin the possibilities for economic recovery.
On the hourly time frame, the GBP/USD trend is bullish, but the beginning of a corrective downward movement is observed. The MACD indicator became negative. Under such market conditions, it is better to look for buy trades from the support levels. Sell positions can only be considered with short targets from the resistance levels, where sellers show initiative throughout the day.
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Alternative scenario: if the price breaks through the 1.3692 support level and consolidates below, the bearish scenario will likely resume.
The USD/JPY currency pair is highly dependent on the dynamics of the dollar index now. The dollar index strengthened yesterday, which led to an increase in the USD/JPY quotes. Japan’s GDP increased by 1.9% in annual terms thanks to solid capital spending and high production volumes, which compensated for weak activity in the service sector.
The main trend of the USD/JPY currency pair is bullish. The price is now trading in a wide corridor and broke through an important resistance level. The MACD indicator has become positive. Under such market conditions, traders should look for buy trades from the support level, where buyers show initiative. Sell positions should be considered from the positions where sellers show initiative on the lower time frames.
Alternative scenario: if the price falls below 109.43, the uptrend is likely to be broken.
The Canadian dollar is a commodity currency, so the USD/CAD currency pair is highly dependent on the dynamics of the dollar index and oil prices. Yesterday, the dollar index strengthened while oil prices remained at the same level. As a result, the USD/CAD currency pair has significantly strengthened. Today, a lot of macro statistical data are expected to be released in Canada, including an interest rate decision and an accompanying monetary policy statement from the Bank of Canada.
In terms of technical analysis, the trend on the USD/CAD currency pair is bearish. But the price is now in a local correctional upward movement. It is better to consider sell positions from the resistance levels, where sellers show initiative. Buy positions can be considered with short targets from the support levels, where buyers show initiative.
Alternative scenario: if the price breaks through the 1.2812 resistance level and fixes above, the uptrend will likely resume.
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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