The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2084
Prev Close: 1.2076
% chg. over the last day: -0.07%
On Monday and during the Asian session, EUR/USD pulled back from the support level, which may signal a short-term halt of the southern movement. But the fundamental background and mid-term technical indicators demonstrate the likely continuation of the decline of the euro against the dollar. The yield spread between German bonds and the US Treasuries remains well below the previous quarter.
Trading recommendations
Support levels: 1.2059, 1.1799
Resistance levels: 1.2130, 1.2222
The main scenario for trading EUR/USD is selling on growth. The pair is showing a tendency to roll back, but the price hasn’t managed to fix above the SMA 100 so far. The MACD went into the positive zone, while the ADX showed insignificant bullish strength. This indicates the possibility of the continuation of the rollback to the level of 1.2130.
Alternative scenario: if the price manages to fix above the level of 1.2130, the pair may return to the range with the upper border of 1.2222.
News feed for 2021.01.19:
- German Consumer Price Index (MoM) (Dec) at 10:00 (GMT+2);
- ZEW Germany Economic Sentiment Indicator (Jan) at 13:00 (GMT+2);
- ZEW Eurozone Economic Sentiment Indicator (Jan) at 13:00 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3600
Prev Close: 1.3582
% chg. over the last day: -0.13%
The sterling was giving mixed signals by the end of Monday. After a quick move down, more than 60 points of a rollback occurred, leaving a long shadow below. At the same time, in the Asian session, the price was able to rise above the opening price of the previous day. This indicates a tendency to stop southern traffic.
Trading recommendations
Support levels: 1.3532, 1.3428
Resistance levels: 1.3702, 1.4386
The main scenario in GBP/USD is sideways trading between 1.3624 and 1.3532. Mixed signals started to occur at H1. The price is stuck between the moving averages SMA 100 and SMA 50. The MACD is in the positive zone, but is still very close to zero. The ADX showed more significant growth during the pullback, which indicates the presence of bullish strength in the pair. The overall result is neutral.
Alternative scenario: if the pair fixes above 1.3624, the pair is likely to return to growth to 1.3702. The fixation below 1.3532 will indicate the resumption of the southern movement.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 103.82
Prev Close: 103.68
% chg. over the last day: -0.13%
On Monday, USD/JPY followed the trend of the entire market. The pullback of the dollar without that much movement in the stock market slightly reduced the value of the pair. However, already on Tuesday’s Asian session, a northern impulse appeared following the rise in risky assets, which should alert the bears in the pair.
Trading recommendations
Support levels: 103.53, 103.18
Resistance levels: 104.40, 104.76
The main scenario is to purchase. At the moment, all technical indicators synchronously give a northern signal. The sharp movement and fixation of the price above the moving averages rebuilt the direction of the moving averages upwards. The MACD is now above the January 14 level. The ADX has quickly turned over and shows the presence of bullish strength in the pair.
An alternative scenario assumes the price fixing below 103.53. In this case, a renewed bearish sentiment is possible.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2730
Prev Close: 1.2751
% chg. over the last day: +0.16%
On Monday, prices in the oil market rose slightly, which, together with a slight decline in the dollar index, put pressure on the USD/CAD quotes. A rebound from the first resistance level with the formation of a long shadow at the top on the daily chart indicates a probable temporary stop of the northern correction.
Trading recommendations
Support levels: 1.2630, 1.2523
Resistance levels: 1.2797, 1.2834, 1.2875
The main scenario is trading in a sideways range between 1.2710 and 1.2797. While declining, the ADX reversed direction sharply on Monday and Tuesday’s Asian session. It indicates the presence of bearish strength now. The MACD is also indicating a southern signal, having consolidated below zero. But at the same time, the pair made a slight rollback and couldn’t fix below the moving averages.
Alternative scenario: if the price is able to fix below 1.2710, the pair may return to 1.2630. The fixation above 1.2797 will indicate further northward movement.
