The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2075
Prev Close: 1.2127
% chg. over the last day: +0.43%
On Tuesday, EUR/USD managed to break through above the first resistance level, indicating a slowdown of the southern correction. All G10 currencies went up in price against the dollar, and the euro was no exception. The economic sentiment indicator and a large-scale cash infusion from the US government help the euro bulls to maintain a long-term northern trend.
Trading recommendations
Support levels: 1.2059, 1.1799
Resistance levels: 1.2130, 1.2222
The main scenario for trading EUR/USD is buying. The price fixed above the moving averages firmly. The ADX shows a significant increase in bullish potential, while the overbought zone is still far away. In this case, the price can reach 1.2222 without significant pullbacks.
Alternative scenario: if the price manages to fix below the level of 1.2130, the pair may decline to 1.2059.
News feed for 2021.01.20:
- Eurozone Consumer Price Index (YoY) (Dec) at 13:00 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3583
Prev Close: 1.3629
% chg. over the last day: +0.34%
On Tuesday and Wednesday’s Asian session, the sterling followed the general market trend against the dollar. But the British currency seems weaker than the euro from a fundamental point of view. Gilts yield hasn’t changed much lately. At the same time, the difference against Treasuries remains well below the previous quarter. In this case, bulls should be careful.
Trading recommendations
Support levels: 1.3532, 1.3428
Resistance levels: 1.3702, 1.4386
The main scenario in GBP/USD is cautious buying on growth. The sterling is growing solely due to the fall of the dollar, which may eventually lead to unexpected turns. But the technical indicators are still strong. The ADX shows that the bullish potential is higher than in the euro. But here the price is already in the overbought area and a rollback to the moving averages is possible.
Alternative scenario: if the pair fixes below 1.3602, it’s likely to return to 1.3532.
News feed for 2021.01.20:
- Eurozone Consumer Price Index (YoY) (Dec) at 13:00 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3583
Prev Close: 1.3629
% chg. over the last day: +0.34%
On Tuesday and Wednesday’s Asian session, the sterling followed the general market trend against the dollar. But the British currency seems weaker than the euro from a fundamental point of view. Gilts yield hasn’t changed much lately. At the same time, the difference against Treasuries remains well below the previous quarter. In this case, bulls should be careful.
Trading recommendations
Support levels: 1.3532, 1.3428
Resistance levels: 1.3702, 1.4386
The main scenario in GBP/USD is cautious buying on growth. The sterling is growing solely due to the fall of the dollar, which may eventually lead to unexpected turns. But the technical indicators are still strong. The ADX shows that the bullish potential is higher than in the euro. But here the price is already in the overbought area and a rollback to the moving averages is possible.
Alternative scenario: if the pair fixes below 1.3602, it’s likely to return to 1.3532.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2752
Prev Close: 1.2730
% chg. over the last day: -0.17%
On Tuesday, oil prices continued to rise, which brought additional pressure on the pair. All indicators, including fundamental ones, indicate a continuation of the fall. However, everything may change tonight, when the Bank of Canada will announce the results of the meeting and hold a press conference.
Trading recommendations
Support levels: 1.2630, 1.2523
Resistance levels: 1.2797, 1.2834, 1.2875
The main scenario is sales. So far, there is no apparent reason to consider purchases in pairs. The ADX continues to show the presence of bearish strength. A southern convergence is observed on the MACD. The overall result indicates that the bearish signal is quite strong and the price may retest the 1.2630 level.
Alternative scenario: if the price can fix above 1.2741, the pair may return to 1.2797.
News feed for 2021.01.20:
- Canada Core Consumer Price Index (MoM) (Dec) at 16:30 (GMT+2);
- Bank of Canada Interest Rate Decision at 18:00 (GMT+2).
