The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1855
Prev Close: 1.1917
% chg. over the last day: +0.52%
On Monday, the head of ECB Christine Lagarde announced that more than 100 million people in the European Union have been vaccinated against COVID-19. The ECB officials expect that the second half of the year will show an acceleration of economic growth in the eurozone. Analysts are confident that, considering the continued soft monetary policy in the EU, the euro will strengthen in the medium term.
Trading recommendations
Support levels: 1.1835, 1.1809
Resistance levels: 1.1920, 1.2002, 1.2050, 1.2109, 1.2144, 1.2174, 1.2212, 1.2243
Sellers’ pressure is weakening. The MACD indicator has already moved into the positive zone, the correction bounce has started. The price is now trading in a narrow flat. Under such market conditions, traders can look for both selling deals from the resistance levels and buying deals from the support levels. There is an untested support level below, so the price can make one more downward move before it starts to rise.
Alternative scenario: if the price breaks through the 1.2144 resistance level and fixes above, the general uptrend is likely to resume.
News feed for 2021.06.22:
- US Existing Home Sales (m/m) at 17:00 (GMT+3);
- US Fed Chair Jerome Powell testifies at 21:00 (GMT+3).
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3803
Prev Close: 1.3933
% chg. over the last day: +0.94%
The British pound increased by 0.94% on Monday. The acceleration of economic growth in the Foggy Albion is still limited by a tight quarantine due to the new Indian COVID-19 strain. But in general, low interest rates allow companies to borrow and expand capacity and business. Therefore, as soon as the restrictions are lifted, the investors should expect an increase in consumer demand, which will favorably affect the national currency.
Trading recommendations
Support levels: 1.3835, 1.3801, 1.3767
Resistance levels: 1.3931, 1.4002, 1.4075, 1.4101, 1.4138, 1.4191
The GBP/USD trend is bearish on the H1 timeframe. At the moment, the price is trading below the moving average. The MACD indicator returned to the positive zone. 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.
Alternative scenario: if the price breaks through the 1.4101 resistance level and consolidates above, the bearish scenario is likely to be canceled.
The USD/JPY currency pair
Technical indicators of the currency pair:
Prev Open: 110.17
Prev Close: 110.31
% chg. over the last day: +0.14%
The USD/JPY currency pair failed to break down the priority change level of 109.83 and returned to the uptrend. Buyers not only kept the level but also managed to break through two resistance levels at once. The fundamental background for the USD/JPY is mixed now, as on the one hand, the dollar index will continue to weaken, and on the other hand, the Japanese yen is also demonstrating weakness. But at the moment, the Japanese yen is much weaker.
Trading recommendations
Support levels: 110.23,109.83, 109.62, 109.31
Resistance levels: 110.47, 110.73 110.94, 111.48
The trend is still bullish, but the price has reached the priority change level. The price is trading above the moving average, and the MACD indicator has returned to the positive zone. Under such market conditions, traders are better to look for buy trades from the support levels. The price has reached the resistance level now, so traders need to wait for either a breakout or a bounce from the level downward.
Alternative scenario: if the price falls below 109.83, the general downtrend is likely to resume.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2458
Prev Close: 1.2363
% chg. over the last day: -0.77%
There is a corrective movement down within the uptrend on the USD/CAD currency pair. But many analysts believe that the fundamental picture for the Canadian dollar is more promising because the Canadian dollar is a commodity currency and is correlated with oil prices, which show strong growth. Therefore, as soon as the market reaction to the Fed’s statements is over, the experts expect the USD/CAD quotes to decline in the mid-term.
Trading recommendations
Support levels: 1.2321, 1.2251, 1.2190, 1,2148 1.2121, 1.2096
Resistance levels: 1.2404, 1.2478, 1.2519
Technically, the trend remains bullish. The price is now trading above the moving average, and the MACD indicator has moved into the negative zone. Buyers should wait for the price on the support levels and then look for long deals. There are no optimal entry points for sell positions right now.
Alternative scenario: if the price breaks through the 1.2190 support level and fixes below, the downtrend is likely to be resumed.
