The Analytical Overview of the Main Currency Pairs on 2021.11.19

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1319
• Prev. Close: 1.1372
• % chg. over the last day: +0.47%

The housing price index in Germany increased more than 1% due to an influx of money from the European Central Bank. Germany has decided to invest free money in real estate.

Trading recommendations

• Support levels: 1.1256
• Resistance levels: 1.1386,1.1436,1.1535,1.1613,1.1667,1.1717

From the technical point of view, the EUR/USD on the hour time frame is bearish. The Euro continues to show weakness. The MACD indicator has become positive, but the buyers’ pressure is weakening. Under such market conditions, traders should consider sell positions from the resistance levels near the moving average since the price has deviated strongly from the averages. Buy trades should be considered only from the support levels of the higher time frame, given the buyers’ initiative, but only with short targets.

Alternative scenario:

if the price breaks out through the 1.1535 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: 1.3480
• Prev. Close: 1.3499
• % chg. over the last day: +0.14%

The British pound is slowly strengthening in anticipation that the Central Bank of England will raise the interest rate at its next meeting. On the interbank lending market in London, there is an increase in Libor rates. This indicates that bankers have already started to consider a future interest rate hike.

Trading recommendations

• Support levels: 1.3434,1.3360
• Resistance levels: 1.3507,1.3575,1.3685,1.3748

On the hourly time frame, the trend on GBP/USD is bearish. But the British pound looks more confident than the euro. The MACD indicator has become inactive. Under such market conditions, traders should consider sell positions from the priority change level. Buy trades should be considered only from the support levels of the higher time frame, given the buyers’ initiative.

Alternative scenario:

if the price breaks out through the 1.3575 resistance level and consolidates above, the bullish scenario will likely resume.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 114.10
• Prev. Close: 114.24
• % chg. over the last day: +0.12%

Japan’s consumer price index increased by 0.1% in October. The Bank of Japan does not expect a significant increase in inflation in the country. The country’s Prime Minister Fumio Kishida will soon present a new stimulus package, which, in particular, will include measures to mitigate the negative economic consequences of rising energy prices.

Trading recommendations

• Support levels: 113.79,113.32,112.87,112.30
• Resistance levels: 114.42,115.15,115.50

The global trend on the USD/JPY currency pair is bullish. But the price has corrected to the moving average line. The MACD indicator has become inactive. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zone near the moving average. Sell positions should be considered from the resistance levels of higher time frames, given there is sellers’ initiative, but only with short targets.

Alternative scenario:

if the price falls below 113.32, the uptrend will likely be broken.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.2608
• Prev. Close: 1.2597
• % chg. over the last day: -0.09%

The Canadian dollar is a commodity currency, so the USD/CAD currency pair highly depends on the dynamics of the dollar index and oil prices. Yesterday, the dollar index slightly decreased while oil prices increased. As a result, the USD/CAD currency pair declined slightly due to the strengthening of the Canadian currency. Fundamentally, both the dollar index and oil quotes have an upward trend now, so USD/CAD will be trading flat in the medium term.

Trading recommendations

• Support levels: 1.2598,1.2496,1.2416,1.2388
• Resistance levels: 1.2628,1.2729

From a technical point of view, the trend of the USD/CAD currency is bullish. The MACD indicator is in the positive zone, but there are signs of divergence, which indicates the weakness of the buyers. Under such market conditions, it is better to look for buy trades from the support levels near the moving average. Sell deals should be considered from the resistance levels of the higher time frame or after the price returns to the corridor of 1.2496-1.2598.

Alternative scenario:

if the price breaks down through the 1.2416 support level and fixes below, the downtrend will likely resume.