The Analytical Overview of the Main Currency Pairs on 2021.12.08

The EUR/USD currency pair

• Prev Open: 1.1281
• Prev Close: 1.1268
• % chg. over the last day: -0.12%

Eurozone GDP growth estimate for Q3 remained at 2.2% as expected. German industrial production index unexpectedly grew by 2.8%; analysts had predicted an increase by 0.8%. However, there is a negative factor as well: the ZEW index of economic sentiment for Germany has become negative.

• Support levels: 1.1266, 1.1230, 1.1168
• Resistance levels: 1.1371, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. Yesterday, buyers showed initiative from the 1.1230 support level. At the moment, the price is trading near the moving average. The MACD indicator has become positive. Under such market conditions, traders should consider sell positions from the priority change level of 1.1371. Buy trades can be considered on lower time frames, but only with short targets.

Alternative scenario: if the price breaks out through the 1.1371 resistance level and fixes above, the mid-term uptrend will likely resume.

• – ECB President Lagarde’s Speech at 10:15 (GMT+2);
• – US JOLTs Job Openings (m/m) at 17:00 (GMT+2).

The GBP/USD currency pair

• Prev Open: 1.3259
• Prev Close: 1.3242
• % chg. over the last day: -0.13%

The British pound is still under sellers’ pressure as lending rates in pounds have fallen, signaling doubts among bankers about the Bank of England’s future interest rate hike at the December 16 meeting.

• Support levels: 1.3208
• Resistance levels: 1.3289, 1.3360, 1.3434, 1.3507, 1.3575, 1.3685, 1.3748

On the hourly time frame, the trend on GBP/USD is bearish. The price is trading in the corridor again. The MACD indicator became inactive. Under such market conditions, traders should consider sell positions from the resistance levels around the moving average. Buy trades should be considered from the 1.3208 support level, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.3359 resistance level and consolidates above, the bullish scenario will likely resume.

The USD/JPY currency pair

• Prev Open: 113.43
• Prev Close: 113.56
• % chg. over the last day: +0.11%

The Japanese yen is declining against the US dollar since the risks associated with the Omicron strain are decreasing. Last month, the government announced a record $490 billion spending package to support the economy, contradicting the global trend to cancel crisis mode stimulus measures. Japan’s central bank policy will negatively impact the national currency (growth of USD/JPY quotes) in the medium term.

• Support levels: 113.61, 112.62, 112.30
• Resistance levels: 114.48, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. At the moment, the price is trading in the corridor, but the pressure of buyers is high. Under such market conditions, it is best for traders to look for sell positions from the resistance levels around the moving average or from the upper border of the corridor, but with additional confirmation. Buy positions should be considered from the lower border of the corridor, but with additional confirmation in the form of a buyers’ initiative.

Alternative scenario: if the price rises above 114.17, the uptrend will likely resume.

• – Japan GDP (q/q) at 01:50 (GMT+2).

The USD/CAD currency pair

• Prev Open: 1.2752
• Prev Close: 1.2637
• % chg. over the last day: -0.91%

The Canadian dollar is strengthening amid rising oil prices and as the Central Bank of Canada seeks to raise interest rates. Last week, a Reuters forecast with 32 strategists showed that the Canadian dollar would strengthen by 2.4% to 1.25 per US dollar in three months. The Bank of Canada will publish interest rate data and further monetary policy plans today.

• Support levels: 1.2640, 1.2571, 1.2483, 1.2416, 1.2388
• Resistance levels: 1.2726, 1.2828

From a technical point of view, the USD/CAD currency trend has changed to bearish. The MACD indicator became negative. At the same time, the sellers’ pressure increased. Under such market conditions, it is better to look for buy trades from the 1.2640 support level, but only after additional confirmation in the form of a buyers’ initiative. It is better to consider sell deals from the resistance levels near the moving average.

Alternative scenario: if the price breaks out through the 1.2776 resistance level and fixes above, the downtrend will likely be broken.

• – Canada BoC Interest Rate Decision (m/m) at 17:00 (GMT+2);
• – Canada BoC Rate Statement (m/m) at 17:00 (GMT+2).