The Analytical Overview of the Main Currency Pairs on 2021.12.27

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1325
• Prev. Close: 1.1305
• % chg. over the last day: -0.17%

Today is a bank holiday in most European countries, so the volatility in the market is expected to be low in the first half of the day. In the medium term, an increase in the Fed balance sheet and reduced concerns about the Omicron strain will temporarily weaken the dollar index and increase the European currency.

Trading recommendations

• Support levels: 1.1293,1.1230,1.1168
• Resistance levels: 1.1342,1.1360,1.1436,1.1535,1.1613,1.1667,1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The MACD indicator has become inactive. The volatility is below average due to the holidays. It is better to consider sell deals after a false breakdown of the 1.1342 resistance level. Buy trades can be considered on the lower time frames from the support level of 1.1293, but only with additional confirmation.

Alternative scenario:

if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.3404
• Prev. Close: 1.3379
• % chg. over the last day: -0.18%

Today and tomorrow is a bank holiday in the UK, so volatility on the GBP/USD currency pair is expected to be low these days. In the medium term, an increase in the Fed balance sheet and reduced concerns about the Omicron strain will temporarily weaken the dollar index and increase the British currency.

Trading recommendations

• Support levels: 1.3362,1.3301,1.3277,1.3220
• Resistance levels: 1.3434,1.3507,1.3575,1.3685

On the hourly time frame, the trend on GBP/USD is still bullish. The MACD indicator has become inactive. Under such market conditions, traders should consider buy positions from the 1.3362 support level but only with additional confirmation in the form of a buyers’ initiative. Sell trades can be considered from the resistance level of 1.3434, but only with additional confirmation in the form of a false breakout.

Alternative scenario:

if the price breaks down through the 1.3277 support level and consolidates below, the bearish scenario will likely resume.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 114.37
• Prev. Close: 114.32
• % chg. over the last day: -0.04%

Japan’s retail sales rose faster than expected in November thanks to a decline in COVID-19 cases this month, which prompted buyers to increase spending on goods and services. Japan’s government on Friday approved a record $940 billion budget for the fiscal year 2022.

Trading recommendations

• Support levels: 114.30,114.12,113.95,113.68,113.30,112.62,112.30
• Resistance levels: 115.15,115.50

The global trend on the USD/JPY currency pair has changed to bullish. The MACD indicator is signaling a divergence, which means that a slight correction should be expected. Buy positions should be considered from the 114.12 support level, but with additional confirmation in the form of a buyers’ initiative. There is no optimal entry point for sell positions now.

Alternative scenario:

if the price fixes below 113.68, the uptrend will likely be broken.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.2806
• Prev. Close: 1.2802
• % chg. over the last day: -0.03%

The Canadian dollar is a commodity currency that correlates strongly with oil prices and the dollar index. Oil prices are increasing slowly, while the dollar index was stable on Friday. The Canadian dollar is slowly strengthening. Today and tomorrow, it’s a bank holiday in Canada, so volatility on the USD/CAD currency pair is expected to be low these days.

Trading recommendations

• Support levels: 1.2783,1.2721,1.2677,1.2638
• Resistance levels: 1.2903,1.2951

From a technical point of view, the USD/CAD currency pair is bullish. The MACD indicator is not active, but there is a divergence to buy. Under such market conditions, it is better to look for buy deals from the priority change level of 1.2783. Sell deals should be considered from the resistance level of 1.2903, but with additional confirmation in the form of a sellers’ initiative.

Alternative scenario:

if the price breaks down through the 1.2783 support level and fixes below, the downtrend will likely resume.