by JustForex
The EUR/USD currency pair
- Prev Open: 1.1859
- Prev Close: 1.1823
- % chg. over the last day: -0.30%
The dollar index increased sharply yesterday, triggering a decline of the major currency pairs against the dollar. Despite positive data from Europe, the EUR/USD currency pair decreased by 0.3%, falling back to the 1.1809 support level.
- Support levels: 1.1809
- Resistance levels: 1.1847, 1.1911, 1.1973, 1.2002, 1.2050, 1.2109, 1.2144, 1.2174, 1.2212
The trend is still bearish. The price returned to the 1.1809 support level, forming a double-bottom pattern. But the initiative from the buyers is very weak. The MACD indicator is in the negative zone, and there are signs of divergence on the higher timeframes. Under such market conditions, it is better to trade intraday and look for buy trades from the support levels now. There is no good entry point for short positions at the moment.
Alternative scenario: if the price breaks out through the 1.1972 resistance level and fixes above, the general uptrend is likely to be resumed.
- – Europe Economic Forecasts (q/q) at 12:00 (GMT+3);
- – US JOLTs Job Openings (m/m) at 17:00 (GMT+3);
- – US FOMC Meeting Minutes at 21:00 (GMT+3).
The GBP/USD currency pair
- Prev Open: 1.3835
- Prev Close: 1.3794
- % chg. over the last day: -0.30%
The United Kingdom is a supplier of Brent crude oil and is ranked 13th among oil-producing countries. Yesterday’s sharp drop in oil prices and strengthening of the dollar index caused the fall of GBP/USD quotes. Today’s FOMC minutes will be crucial in terms of understanding where the British pound will go next.
- Support levels: 1.3756
- Resistance levels: 1.3835, 1.3923, 1.4002, 1.4075, 1.4101, 1.4138, 1.4191
The GBP/USD trend is bearish on the H1 timeframe. Buying pressure has become weak now; the price drops below the moving average. The MACD indicator is in the negative zone, but there are signs of divergence. Under such market conditions, traders are better to look for both sell trades from the resistance levels and buy trades from the support levels on the intraday timeframes.
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.
Sign Up for Our Stock Market Newsletter – Get updated on News, Charts & Rankings of Public Companies when you join our Stocks Newsletter
Alternative scenario: if the price breaks out through the 1.3922 resistance level and consolidates above, the bearish scenario is likely to be canceled.
- – US FOMC Meeting Minutes at 21:00 (GMT+3).
The USD/JPY currency pair
- Prev Open: 110.93
- Prev Close: 110.61
- % chg. over the last day: -0.29%
The futures on the Japanese yen, which has an inverse correlation with the USD/JPY currency pair, sharply increased yesterday. The most interesting thing is that the rise in the dollar index did not stop the fall of USD/JPY, which means that the Japanese yen is now strengthening more than the US dollar.
- Support levels: 110.47, 109.83, 109.62, 109.31
- Resistance levels: 110.73, 111.06, 111.48, 110.73, 112.18
From the point of view of technical analysis, the trend remains bullish. But the price reached the change priority level yesterday and tried to break down through it, but the buyers managed to defend their positions. Taking into account the divergence on the MACD indicator, traders are better to look for buy deals from the support levels. For confident selling, it is better to wait for a breakdown of 110.47 support level.
Alternative scenario: if the price falls below 110.47, the general downtrend is likely to be resumed.
- – US FOMC Meeting Minutes at 21:00 (GMT+3).
The USD/CAD currency pair
- Prev Open: 1.2337
- Prev Close: 1.2456
- % chg. over the last day: +0.96%
The USD/CAD currency pair increased by 0.96% by the end of the day. The USD/CAD quotes are highly dependent on two factors now: the dollar index and oil prices. Yesterday, the dollar index sharply increased while oil prices collapsed, which provoked a rapid jump of USD/CAD quotes.
- Support levels: 1.2404, 1.2347, 1.2312, 1.2260, 1.2190
- Resistance levels: 1.2478, 1.2519
Technically, the trend remains bullish. The price is trading above the moving average, but there is a strong deviation from the midline. The MACD indicator has returned to the positive zone with no signs of divergence. Under such market conditions, it is best to trade on the lower timeframes. Buyers need to wait for a slight pullback to the nearest support levels. Traders can also look for entry points on intraday timeframes for short positions, but only with short targets because it will be trading against the trend.
Alternative scenario: if the price breaks down through the 1.2260 support level and fixes below, the downtrend is likely to be resumed.
- – Canada Ivey PMI (m/m) at 17:00 (GMT+3);
- – US FOMC Meeting Minutes at 21:00 (GMT+3).
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.
- COT Soft Commodities Charts: Large Speculator bets led by Corn & Soybean Oil Nov 16, 2024
- COT Stock Market Charts: Speculator Bets led by MSCI EAFE & VIX Nov 16, 2024
- The Dollar Index strengthened on Powell’s comments. The Bank of Mexico cut the rate to 10.25% Nov 15, 2024
- EURUSD Faces Decline as Fed Signals Firm Stance Nov 15, 2024
- Gold Falls for the Fifth Consecutive Trading Session Nov 14, 2024
- Profit-taking is observed on stock indices. The data on wages in Australia haven’t met expectations Nov 13, 2024
- USD/JPY at a Three-Month Peak: No One Opposes the US Dollar Nov 13, 2024
- Can Chinese Tech earnings offer relief for Chinese stock indexes? Nov 13, 2024
- Bitcoin hits an all-time high above $88,000. Oil remains under pressure Nov 12, 2024
- Brent Crude Stumbles as Market Sentiments Turn Cautious Nov 12, 2024
