The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2126
Prev Close: 1.2105
% chg. over the last day: -0.17%
EUR/USD was the weakest pair at the end of Wednesday. The day closed in the red despite the negative dynamics of the dollar index. This indicates significant pressure from the bears and the need to be careful with the euro bulls. Perhaps this is due to the upcoming ECB meeting, which will be held today at the end of the European session.
Trading recommendations
Support levels: 1.2059, 1.1799
Resistance levels: 1.2158, 1.2222
The main scenario for trading EUR/USD is buying. Despite the apparent weakness of the euro compared to other currencies, the technical characteristics still show the likelihood of growth. The ADX still only reacts to the northern movement, demonstrating high growth potential. The MACD is holding above zero, and the price is fixed above the moving averages.
Alternative scenario: if the price manages to fix below the level of 1.2059, the pair may move to a decline to 1.1799.
News feed for 2021.01.21:
- ECB Interest Rate Decision (Jan) at 15:45 (GMT+2);
- US Initial Jobless Claims at 16:30 (GMT+2);
- ECB press conference at 16:30 (GMT+2).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3628
Prev Close: 1.3651
% chg. over the last day: +0.17%
The sterling is showing strong bullish potential on par with commodity currencies. Discussion of the plan to rescue the economy had a positive impact on the foreign exchange market. The Chancellor of the Treasury Rishi Sunak is expected to provide an assistance program that will keep workplaces for those on vacation during the quarantine period and pay salaries up to 80%.
Trading recommendations
Support levels: 1.3622, 1.3517
Resistance levels: 1.3716, 1.4386
The main scenario in GBP/USD is buying. Sterling renewed its highs and when the price fixes above 1.3716, the pair’s immediate resistance will lie at the spring 2018 levels at 1.4386. The technical specifications are showing strong bullish potential. The ADX shows that the pound is able to go about 80 more points before the first rollback.
Alternative scenario: if the pair fixes below 1.3622, the pair is likely to return to 1.3517.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 103.89
Prev Close: 103.46
% chg. over the last day: -0.42%
It seems as if the yen has completely lost contact with the stock markets. The negative value of the close of the day turned out to be even greater than the dollar index showed. At the same time, the stock market was able to renew highs. A price fixation below the weekly range levels indicates a presence of bears in this pair.
Trading recommendations
Support levels: 103.18, 102.89
Resistance levels: 104.20, 104.40
The main scenario is sales. Specifications indicate continued southbound traffic. But the ADX is giving a weak signal. This suggests that if there is a decline – it will be very slow. Convergence has formed on the MACD, and there are no hints of stopping the fall yet.
The alternative scenario assumes the price-fixing above 103.77. In this case, the pair may be able to return to 104.20.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 103.89
Prev Close: 103.46
% chg. over the last day: -0.42%
It seems as if the yen has completely lost contact with the stock markets. The negative value of the close of the day turned out to be even greater than the dollar index showed. At the same time, the stock market was able to renew highs. A price fixation below the weekly range levels indicates a presence of bears in this pair.
Trading recommendations
Support levels: 103.18, 102.89
Resistance levels: 104.20, 104.40
The main scenario is sales. Specifications indicate continued southbound traffic. But the ADX is giving a weak signal. This suggests that if there is a decline – it will be very slow. Convergence has formed on the MACD, and there are no hints of stopping the fall yet.
The alternative scenario assumes the price-fixing above 103.77. In this case, the pair may be able to return to 104.20.
