by JustForex
The EUR/USD currency pair
- Prev Open: 1.1319
- Prev Close: 1.1372
- % chg. over the last day: +0.47%
TThe housing price index in Germany increased more than 1% due to an influx of money from the European Central Bank. Germany has decided to invest free money in real estate.
- Support levels: 1.1256
- Resistance levels: 1.1386, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717
From the technical point of view, the EUR/USD on the hour time frame is bearish. The Euro continues to show weakness. The MACD indicator has become positive, but the buyers’ pressure is weakening. Under such market conditions, traders should consider sell positions from the resistance levels near the moving average since the price has deviated strongly from the averages. Buy trades should be considered only from the support levels of the higher time frame, given the buyers’ initiative, but only with short targets.
Alternative scenario: if the price breaks out through the 1.1535 resistance level and fixes above, the mid-term uptrend will likely resume.
- – ECB President Christine Lagarde’s Speech at 10:00 (GMT+2);
- – US FOMC Member Waller speaks at 17:45 (GMT+2);
- – US FOMC Member Clarida speaks at 19:15 (GMT+2);
- – ECB President Christine Lagarde’s Speech at 22:00 (GMT+2).
The GBP/USD currency pair
- Prev Open: 1.3480
- Prev Close: 1.3499
- % chg. over the last day: +0.14%
The British pound is slowly strengthening in anticipation that the Central Bank of England will raise the interest rate at its next meeting. On the interbank lending market in London, there is an increase in Libor rates. This indicates that bankers have already started to consider a future interest rate hike.
- Support levels: 1.3434, 1.3360
- Resistance levels: 1.3507, 1.3575, 1.3685, 1.3748
On the hourly time frame, the trend on GBP/USD is bearish. But the British pound looks more confident than the euro. The MACD indicator has become inactive. Under such market conditions, traders should consider sell positions from the priority change level. Buy trades should be considered only from the support levels of the higher time frame, given the buyers’ initiative.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Alternative scenario: if the price breaks out through the 1.3575 resistance level and consolidates above, the bullish scenario will likely resume.
- – UK Retail Sales (m/m) at 09:00 (GMT+2).
The USD/JPY currency pair
- Prev Open: 114.10
- Prev Close: 114.24
- % chg. over the last day: +0.12%
Japan’s consumer price index increased by 0.1% in October. The Bank of Japan does not expect a significant increase in inflation in the country. The country’s Prime Minister Fumio Kishida will soon present a new stimulus package, which, in particular, will include measures to mitigate the negative economic consequences of rising energy prices.
- Support levels: 113.79, 113.32, 112.87, 112.30
- Resistance levels: 114.42, 115.15, 115.50
The global trend on the USD/JPY currency pair is bullish. But the price has corrected to the moving average line. The MACD indicator has become inactive. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zone near the moving average. Sell positions should be considered from the resistance levels of higher time frames, given there is sellers’ initiative, but only with short targets.
Alternative scenario: if the price falls below 113.32, the uptrend will likely be broken.
- – Japan National Core Consumer Price Index (m/m) at 01:30 (GMT+2).
The USD/CAD currency pair
- Prev Open: 1.2608
- Prev Close: 1.2597
- % chg. over the last day: -0.09%
The Canadian dollar is a commodity currency, so the USD/CAD currency pair highly depends on the dynamics of the dollar index and oil prices. Yesterday, the dollar index slightly decreased while oil prices increased. As a result, the USD/CAD currency pair declined slightly due to the strengthening of the Canadian currency. Fundamentally, both the dollar index and oil quotes have an upward trend now, so USD/CAD will be trading flat in the medium term.
- Support levels: 1.2598, 1.2496, 1.2416, 1.2388
- Resistance levels: 1.2628, 1.2729
From a technical point of view, the trend of the USD/CAD currency is bullish. The MACD indicator is in the positive zone, but there are signs of divergence, which indicates the weakness of the buyers. Under such market conditions, it is better to look for buy trades from the support levels near the moving average. Sell deals should be considered from the resistance levels of the higher time frame or after the price returns to the corridor of 1.2496-1.2598.
Alternative scenario: if the price breaks down through the 1.2416 support level and fixes below, the downtrend will likely resume.
- – Canada Retail Sales (m/m) at 15:30 (GMT+2).
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.
- Canadian dollar declines after weak GDP data. Qatar threatens EU to halt natural gas exports Dec 24, 2024
- Goldman Sachs has updated its economic projections for 2025. EU countries are looking for alternative sources of natural gas Dec 23, 2024
- COT Bonds Charts: Speculator Bets led by SOFR 3-Months & 10-Year Bonds Dec 21, 2024
- COT Metals Charts: Speculator Bets led lower by Gold, Copper & Palladium Dec 21, 2024
- COT Soft Commodities Charts: Speculator Bets led by Live Cattle, Lean Hogs & Coffee Dec 21, 2024
- COT Stock Market Charts: Speculator Bets led by S&P500 & Russell-2000 Dec 21, 2024
- Riksbank and Banxico cut interest rates by 0.25%. BoE, Norges Bank, and PBoC left rates unchanged Dec 20, 2024
- Brent Oil Under Pressure Again: USD and China in Focus Dec 20, 2024
- Market round-up: BoE & BoJ hold, Fed delivers ‘hawkish’ cut Dec 19, 2024
- NZD/USD at a New Low: The Problem is the US Dollar and Local GDP Dec 19, 2024
