The Analytical Overview of the Main Currency Pairs on 2021.09.20

The EUR/USD currency pair

• Prev Open: 1.1761
• Prev Close: 1.1725
• % chg. over the last day: -0.30%

Inflationary expectations continue to grow in Germany. Inflation is no longer seen as a temporary phenomenon but as something more permanent. The German inflation expectations index increased by 1.60% last week; it’s the highest level since 2013.

• Support levels: 1.1704, 1.1620
• Resistance levels: 1.1772, 1.1802, 1.1835, 1.1894, 1.1934, 1.1969

From the technical point of view, the general trend on the EUR/USD currency pair is bullish. However, the selling pressure is rising, and the price has approached the priority change level. The MACD indicator is in the negative zone, but there are signs of overselling and a reversal in the form of divergence. Under such market conditions, buy trades can be considered from the priority change level, but after a new buyers initiative. It is better to look for sell trades throughout the day from the resistance level in the area of the broken triangle.

Alternative scenario: if the price breaks down through the 1.1704 support level and fixes below, the mid-term uptrend will likely be broken.

• – German Producer Price Index (m/m) at 09:00 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3788
• Prev Close: 1.3729
• % chg. over the last day: -0.43%

Consumer prices in the UK rose at the fastest pace in August as global supply shortages and wage increases accelerated inflation. The National Statistics reported that inflation accelerated from 2% to 3.2% year-over-year.

• Support levels: 1.3692, 1.3632, 1.3614, 1.3525
• Resistance levels: 1.3769, 1.3886, 1.3935, 1.4002

On the hourly timeframe, the GBP/USD trend is bullish. But amid the strengthening of the dollar index, the GBP/USD currency pair is under sellers’ pressure. The MACD indicator has become negative. There are signs of overselling but no signs of reversal. Under such market conditions, it is better to look for buy trades from the priority change level, but after a new initiative from the buyers. Sell positions can be considered from the resistance levels with short targets throughout the day.

Alternative scenario: if the price breaks down through the 1.3692 support level and consolidates below, the bearish scenario will likely resume.

The USD/JPY currency pair

• Prev Open: 109.72
• Prev Close: 109.97
• % chg. over the last day: +0.23%

Today is a bank holiday in Japan, so volatility on currency pairs with the Japanese yen will be low, and the price will follow the dollar index.

• Support levels: 109.43, 109.19, 108.65
• Resistance levels: 110.10, 110.40, 110.66, 110.95, 111.48

The main trend of the USD/JPY currency pair is bearish. But amid the strengthening of the dollar index and weakness of the Japanese yen, the USD/JPY moved upward again. The MACD indicator has become positive, showing no signs of reversal. Under such market conditions, traders should look for sell positions from the priority change level. Buy positions should be considered only from the support levels where the buyers show initiative throughout the day.

Alternative scenario: if the price rises above 110.10, the uptrend is likely to resume.

The USD/CAD currency pair

• Prev Open: 1.2680
• Prev Close: 1.2769
• % chg. over the last day: +0.70%

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. The dollar index increased on Friday, while oil prices decreased. As a result, the price of USD/CAD moved upward. Today federal elections are held in Canada.

• Support levels: 1.2726, 1.2646, 1.2583, 1.2518, 1.2425
• Resistance levels: 1.2812, 1.2891, 1.2951

In terms of technical analysis, the trend of the USD/CAD currency pair is bearish. But due to the growth of the dollar index, the price is now under the pressure of buyers. On Friday, the price broke out of the triangle upward. Buy positions can be considered from the support levels where buyers show initiative, and only with short targets. It is better to look for sell positions from the priority change level, but only after the new initiative from the sellers.

Alternative scenario: if the price breaks out through the 1.2812 resistance level and fixes above, the uptrend will likely resume.

• – Canada Federal Election, All Day.