by JustForex
The number of vacancies in the US reached a record high of 10.9 million since employers struggled to find workers. This news had a positive effect on the dollar index. Today, the European Central Bank will publish its interest rate decision and announce further monetary policy plans.
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 but after additional confirmation in the form of a buyers’ initiative.
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 Parliament supported Boris Johnson’s plan to increase the tax on national insurance, social and health care services. Johnson made some members of his ruling party angry by breaking campaign promises not to raise taxes. Under the proposal, the National Insurance payroll tax rate paid by both employees and employers would increase by 1.25%, with the same increase applied to the shareholder’s dividend tax.
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, but there are signs of divergence. Under such market conditions, it is better to look for buy trades from the support levels, where buyers show initiative. Sell positions can only be considered with short targets from the resistance levels.
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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 a slight increase in the USD/JPY quotes. Japan’s revised GDP data has slightly strengthened the national currency.
The main trend of the USD/JPY currency pair is bullish. Yesterday, the price returned to the wide corridor, forming a false breakout zone. The MACD indicator is in the positive zone but with signs of the buyer’s weakness. Under such market conditions, traders should look for buy trades near the moving average line from the support level, where buyers show initiative. Sell positions should be considered from the false breakout zone on the lower time frames.
Alternative scenario: if the price falls below 109.43, the uptrend is likely to be broken.
The Bank of Canada left its key interest rate unchanged, referring to the risks associated with the pandemic. The Management Board of the Central Bank believes that the Canadian economy still requires support for monetary policy. With the release of this news, the Canadian dollar lost its position.
In terms of technical analysis, the trend on the USD/CAD currency pair is bearish. But the price has consolidated in a local correctional upward movement. The MACD indicator began to signal a reversal. 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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