The EUR/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.1875
Prev Close: 1.1859
% chg. over the last day: -0.13%
The situation with the EUR/USD currency pair remains the same. The price is trading in a narrow range and unlikely to change before the CPI news release.
Trading recommendations
Support levels: 1.1843, 1.1809, 1.1746, 1.1609
Resistance levels: 1.1889, 1.1934, 1.1969
The trend is still bearish. The price is below the change priority level. But the buying pressure is increasing. The price has broken out through 2 resistance levels and is trading above the moving average. The MACD indicator is in the positive zone with slight divergence. Under such market conditions, it is better to trade intraday. For sell positions, traders should wait for a pullback to the priority change level and see the reaction of sellers showing that they are ready to defend the level. Entries for long positions can be searched on support levels.
Alternative scenario: if the price breaks out through the 1.1889 resistance level and fixes above, the general uptrend is likely to be resumed.
The GBP/USD currency pair
Technical indicators of the currency pair:
Prev Open: 1.3881
Prev Close: 1.3880
% chg. over the last day: -0.01%
The situation with the GBP/USD currency pair is very similar to EUR/USD. But the British pound looks more confident, as it correlates with Brent oil prices, which tend to rise. Moreover, the LIBOR 3-month dollar rate continues to decline slowly, providing support for the British currency.
Trading recommendations
Support levels: 1.3835, 1.3756
Resistance levels: 1.3923, 1.4002, 1.4075, 1.4101, 1.4138, 1.4191
The GBP/USD trend is bearish on the H1 timeframe. But the buyer’s pressure is growing. The price is moving to the priority change level. The MACD indicator is in the positive zone, but there are the first signs of divergence. Under such market conditions, it is better to trade intraday. For sell positions, traders should wait for a pullback to the priority change level and see the reaction of sellers showing that they are ready to defend the level. Entries for long positions can be searched on support levels.
Alternative scenario: if the price breaks out through the 1.3922 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: 110.10
Prev Close: 110.34
% chg. over the last day: +0.22%
The USD/JPY currency pair is slowly rising and has approached a strong resistance level. The increase in the price is caused by the fact that the dollar index has strengthened a little, and the Japanese yen futures declined due to a temporary increase in US government bonds.
Trading recommendations
Support levels: 109.63, 109.31
Resistance levels: 110.47, 110.73, 111.06, 111.48, 110.73, 112.18
From the point of view of technical analysis, there is a downward trend on the H1 timeframe. After the sharp drop in quotes on Thursday, the price corrected on Friday and Monday. The MACD indicator returned to the positive zone. Under such market conditions, traders can look for short positions from the resistance levels within the day. There are no optimal entry points for long positions now.
Alternative scenario: if the price rises above 111.05, the uptrend is likely to be resumed.
The USD/CAD currency pair
Technical indicators of the currency pair:
Prev Open: 1.2449
Prev Close: 1.2452
% chg. over the last day: +0.02%
Good statistics on the labor market led to the growth of Canadian dollar futures and the fall of the USD/CAD quotes (reverse correlation) on Friday and Monday. Much will depend on the dollar index and how it reacts to the CPI data today.
Trading recommendations
Support levels: 1.2448, 1.2404, 1.2347, 1.2312, 1.2260, 1.2190
Resistance levels: 1.2519, 1.2587
Technically, the trend remains bullish. The price is still trading above the moving average and above the priority change level. The MACD is in the negative zone. Under such market conditions, it is best to trade on the lower timeframes. Buyers may look for trades from the support levels within the day. There are no optimal entry points to open sell positions now.
Alternative scenario: if the price breaks down through the 1.2370 support level and fixes below, the downtrend is likely to be resumed.
