The Analytical Overview of the Main Currency Pairs on 2021.10.25

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1622
• Prev. Close: 1.1644
• % chg. over the last day: +0.19%

An increasing reduction in global supply led to the biggest drop in manufacturing production in France and seriously slowed the pace of economic growth in Germany. Production order in both countries worsened in October.

Trading recommendations

• Support levels: 1.1613,1.1573,1.1548,1.1502,1.1453
• Resistance levels: 1.1671,1.1717,1.1772,1.1802,1.1835

From the technical point of view, the EUR/USD on the hour timeframe is bullish, but the price is now trading in a wide-volatile corridor. The MACD indicator is positive again. Under such market conditions, traders should consider buying positions from the support levels near the moving average or from the buyer’s initiative areas. It is best to look for sell trades from the resistance levels of the higher timeframe.

Alternative scenario:

if the price breaks down through the 1.1613 support level and fixes below, the mid-term uptrend will likely be broken.

The GBP/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.3791
• Prev. Close: 1.3748
• % chg. over the last day: -0.31%

The UK retail sales decreased by 0.2% in September. An increase of 0.6% was expected. But the business activity index in the manufacturing and service sectors surprisingly increased while analysts expected to see weaker figures due to supply chain problems and high prices for raw materials.

Trading recommendations

• Support levels: 1.3736,1.3685,1.3648,1.3617,1.3532,1.3457,1.3360
• Resistance levels: 1.3831,1.3886

On the hourly time frame, the GBP/USD trend is bullish. The situation is very similar to the EUR/USD currency pair. The price is now trading in a wide corridor. The MACD indicator has become inactive. Buy trades should be considered only within the day and only from the initiative zone of the buyers. It is better to look for sell deals from the resistance levels of the higher timeframe, but after an additional confirmation in the form of a sellers’ initiative.

Alternative scenario:

if the price breaks down through the 1.3685 support level and consolidates below, the bullish scenario will likely be broken.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 113.95
• Prev. Close: 113.47
• % chg. over the last day: -0.42%

Japan will focus on supply chain and security issues. On Saturday, a senior official from the ruling party said that Japan’s economic security strategy will focus on two factors: “strategic autonomy and indispensability.”

Trading recommendations

• Support levels: 113.42,112.30,111.53,110.99,110.65
• Resistance levels: 114.48,115.15

The main trend of the USD/JPY currency pair is bullish. At the moment, the price corrected to the moving average area. The MACD indicator has become inactive. Under such market conditions, it’s better to look for buy positions from the support levels near the moving average or the buyers’ initiative zones on the lower timeframes. Sell positions should be considered from the resistance levels of a higher timeframe, given there is sellers’ initiative.

Alternative scenario:

if the price falls below 112.30, the uptrend is likely to be broken.

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.2368
• Prev. Close: 1.2364
• % chg. over the last day: -0.03%

The Canadian dollar is a commodity currency, so USD/CAD is highly dependent on the dynamics of the dollar index and oil prices. The dollar index traded flat on Friday while oil prices increased. As a result, the USD/CAD currency pair slightly decreased due to a strengthening of the Canadian dollar.

Trading recommendations

• Support levels: 1.2306,1.2260
• Resistance levels: 1.24251.2518,1.2565,1.2628,1.2729,1.2774

From the technical point of view, the trend of the USD/CAD currency pair is bearish. The narrowing of liquidity in the form of a triangle occurred in the direction of buying. The MACD indicator has become positive. Under such market conditions, it is better to look for sell deals from the resistance levels near the moving average. Buy trades should be considered only on lower time frames from the initiative zone of buyers near the triangle breakout point.

Alternative scenario:

if the price breaks out through the 1.2518 resistance level and fixes above, the uptrend will likely resume.