by JustForex
On Monday, the European currency decreased sharply on the back of the dollar index growth. The Eurozone’s manufacturing activity index was unchanged. Italy and France showed gains over the last month, while Spain and Germany showed declines.
From the technical point of view, the EUR/USD on the hour time frame is still bullish. Due to the sharp drop in the quotes, there is a high probability that the trend will change back to bearish. The price has reached the priority change level, and the buyers’ reaction is weak. The MACD indicator has become negative without any sign of reversal. Now the buyers need to keep the price above the priority change level. It is better to consider sell deals from the 1.1336 resistance level, but with additional confirmation. Buy trades can be considered on the lower time frames from the support level 1.1288, but only with additional confirmation in the form of the buyers’ initiative.
Alternative scenario: if the price breaks down through the 1.1288 support level and fixes below, the mid-term uptrend will be broken.
With the rise of COVID-19 incidents, there is still a lot of uncertainty about further lockdowns in the UK. While the government assures that there will be no further restrictions, there is a high probability that the current lockdowns will continue at least until the end of January. This is not a good scenario for the economic indicators.
On the hourly time frame, the trend on GBP/USD is still bullish. The British pound began to correct due to the rise in the dollar index. Under such market conditions, traders should consider buy positions from the 1.3443 support level but only with additional confirmation in the form of a buyers’ initiative, as the level was already tested yesterday. Sell trades can be considered from the resistance level of 1.3510.
Free Reports:
Alternative scenario: if the price breaks down through the 1.3362 support level and consolidates below, the bearish scenario will likely resume.
The Japanese yen continues to decline against the dollar. The USD/JPY currency pair reached the maximum in almost five years. The medium-term uptrend will continue as the central banks’ monetary policy in Japan and the USA is now diametrically opposed. Yesterday, Japanese Prime Minister Kishida said that the government considers COVID-19 restrictions on flights.
The global trend on the USD/JPY currency pair is bullish. The MACD indicator signals a divergence at several timeframes. Yesterday, the price easily broke through the daily resistance level and fixed higher. But at the moment, the price strongly deviated from the average values, so it is better to consider the buy deals either on the lower time frames or wait for the pullback to the support levels near the moving average. It is better to look for sell positions from the next resistance level or after the price returns under the level of 115.50.
Alternative scenario: if the price fixes below 114.91, the uptrend will likely be broken.
Yesterday, the Canadian dollar fell sharply amid the strengthening of the dollar index, and the decline in oil prices led to an increase in the USD/CAD quotes. The province of Ontario in Canada will return to a partial lockdown due to a spike in COVID-19 cases.
From the technical point of view, the USD/CAD currency pair trend is bearish. But the price reached the priority change level yesterday. The MACD indicator became positive. Under such market conditions, it is better to look for sell deals from the resistance levels of 1.2770 near the moving average. Buy trades can be considered from the support level of 1.2681, but with additional confirmation in the form of a buyers’ initiative.
Alternative scenario: if the price breaks out through the 1.2770 resistance level and fixes above, the downtrend will likely be broken.
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.
By JustMarkets The Dow Jones (US30) decreased by 0.47% on Thursday. The S&P 500 Index…
By RoboForex Analytical Department EURUSD plunged to a six-month low of 1.0543 on Friday amid…
By ForexTime Nvidia: world’s largest company with US$3.6 trillion market cap Shares already soared 196.3% so…
By RoboForex Analytical Department On Thursday, the price of a troy ounce of Gold is…
By Bruce Huber, University of Notre Dame Fossil fuels are the leading driver of climate…
By JustMarkets At the end of Tuesday, the Dow Jones Index (US30) fell by 0.29%.…
This website uses cookies.
