by JustForex
The European Central Bank has kept the interest rate unchanged, but the regulator will cut the bond purchase program in the next quarter. ECB officials made it clear that the economy still needs support as business activity in the Eurozone should return to pre-pandemic levels only at the end of this year, while the spread of the delta strain can delay the full opening of the economy.
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 inactive. 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, or after the breakout of the downtrend line.
Alternative scenario: if the price breaks through the 1.1704 support level and fixes below, the mid-term uptrend will likely be broken.
On the background of the dollar index decline, the British pound significantly strengthened yesterday. An important macro statistical data is expected to be released during the European session today, so the currency pairs with the pound sterling will be more volatile.
On the hourly time frame, the GBP/USD trend is bullish. Yesterday, the price confidently rebounded from the support level near the moving average. The MACD indicator became positive with no signs of reversal. 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.
Japanese Finance Minister Taro Aso, speaking at a regular press conference, said that Japan should not make its public finances the target of experiments for weak financial management. The diplomat reacted to a proposal by Sanae Takaichi, a contender for leadership in the ruling party, to postpone the progress of the primary budget balance target until inflation of 2% is achieved.
The main trend of the USD/JPY currency pair is bullish. But against the background of the dollar weakness, the price of USD/JPY sharply decreased yesterday. The MACD indicator became negative. Under such market conditions, traders should look for buy trades from the support level, where buyers show initiative. Sell positions should be considered on the lower time frames from the zones where sellers show initiative.
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. Both the dollar index and oil prices decreased yesterday. As a result, the USD/CAD currency pair is trading without dynamics.
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 shows weak sellers’ pressure. 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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