The EUR/USD currency pair

• Prev Open: 1.1591
• Prev Close: 1.1610
• % chg. over the last day: +0.16%

Germany is considering ending the state of emergency on November 25. Germany’s inflation has risen rapidly in recent months, so the country needs to improve its economic climate. At its September meeting, the ECB postponed several important decisions until December. Still, since then, rising energy prices have pushed Eurozone inflation to a 13-year high of 3.4% in annual terms, and analysts expect it to continue rising.

• Support levels: 1.1615, 1.1548, 1.1502, 1.1453
• Resistance levels: 1.1671, 1.1717, 1.1772, 1.1802, 1.1835

From the technical point of view, the EUR/USD trend on the hour timeframe has changed to bullish. In the Asian session, the price confidently broke through the priority change level. But the MACD indicator is already showing signs of the buyer’s weakness. Under such market conditions, traders should consider buying positions from the support levels near the moving average or the buyer’s initiative areas. It is best to look for sell trades from the resistance levels of the higher timeframe.

Alternative scenario: if the price breaks down through the 1.1548 support level and fixes below, the mid-term uptrend will likely be broken.

• – US Building Permits (m/m) at 15:30 (GMT+3);
• – US FOMC Member Daly Speaks at 18:00 (GMT+3);
• – US FOMC Member Bostic Speaks at 21:50 (GMT+3).

The GBP/USD currency pair

• Prev Open: 1.3747
• Prev Close: 1.3728
• % chg. over the last day: +0.14%

The number of British power companies that have gone bankrupt since early September amid soaring natural gas prices has reached 13. Today investors will closely follow the speech of the head of the Bank of England. According to JPMorgan, the Bank of England will raise the interest rate by 15 bps in November and by another 25 bps in February and in August next year.

• Support levels: 1.3685, 1.3617, 1.3584, 1.3532, 1.3457, 1.3360, 1.3282
• Resistance levels: 1.3772, 1.3812, 1.3886

On the hourly time frame, the GBP/USD trend is bullish. The British pound is strengthening due to its direct correlation with oil prices and the weakness of the dollar index. The MACD indicator is in the positive zone, but there are the first signs of buyer’s weakness. Buy trades should be considered only within the day and only from the initiative zone of the buyers. It is better to look for sell deals from the resistance levels, but after an additional confirmation in the form of a sellers’ initiative, because the buyers’ pressure is higher now.

Alternative scenario: if the price breaks down through the 1.3532 support level and consolidates below, the bullish scenario is likely to be broken.

• – UK BoE Gov Bailey Speaks at 15:05 (GMT+3).

The USD/JPY currency pair

• Prev Open: 114.16
• Prev Close: 114.31
• % chg. over the last day: +0.13%

Several representatives of the Bank of Japan said that the current stimulative monetary policy should be maintained for a longer period, as the Japanese economy is not coping as well as other advanced economies in the aftermath of the pandemic. That is a negative signal for the JPY since with the US Fed cutting its stimulus program soon, the dollar index might increase, which would lead the USD/JPY currency pair to grow further.

• Support levels: 113.66, 113.25, 112.19, 111.53, 110.99, 110.65, 109.95, 109.63
• Resistance levels: 114.40

The main trend of the USD/JPY currency pair is bullish. The price is trading flat, and a triangle pattern is forming. The MACD indicator has become inactive. However, there is still a divergence in higher time frames, which means that growth is limited, and correction is expected soon. Under such market conditions, it’s better to look for buy positions from the support levels near the moving average since the price has deviated greatly from the average line. Sell positions should be considered only throughout the day from the resistance levels, given there is sellers’ initiative.

Alternative scenario: if the price falls below 112.19, the uptrend is likely to be broken.

The USD/CAD currency pair

• Prev Open: 1.2367
• Prev Close: 1.2377
• % chg. over the last day: +0.08%

The Canadian dollar is a commodity currency, so USD/CAD is highly dependent on the dynamics of the dollar index and oil prices. Both the dollar index and oil prices declined yesterday. As a result, the USD/CAD currency pair remained approximately at the same level.

• Support levels: 1.2340
• Resistance levels: 1.2425 1.2518, 1.2565, 1.2628, 1.2729, 1.2774

From the technical point of view, the trend of the USD/CAD currency pair is bearish. But the price has reached the daily support level. The MACD indicator has become inactive, but there are still signs of divergence on higher time frames. Under such market conditions, it is better to look for sell deals from the resistance levels near the moving average. Buy trades should be considered only on lower time frames from the support levels if there is the buyer’s initiative.

Alternative scenario: if the price breaks out through the 1.2518 resistance level and fixes above, the uptrend will likely resume.