The Analytical Overview of the Main Currency Pairs on 2021.10.27

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1601
• Prev. Close: 1.1596
• % chg. over the last day: -0.04%

In Spain, producer price inflation has reached 23.6% in annual terms, hitting a 44-year high. Gasoline prices in Germany, Italy, and France are among the highest in the last ten years. At the same time, harsh winter in Europe may lead to further growth in gas prices.

Trading recommendations

• Support levels: 1.1580,1.1548,1.1502,1.1453
• Resistance levels: 1.1616,1.1655,1.1671,1.1717,1.1772,1.1802,1.1835

From the technical point of view, the EUR/USD trend on the hour timeframe is bullish, but the price has approached the priority change level. The MACD indicator has become negative. Under such market conditions, traders should consider buying positions from the priority change level, but after an additional confirmation in the form of a buyers’ initiative. It is best to look for sell trades from the resistance levels above the moving average.

Alternative scenario:

if the price breaks down through the 1.1580 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: 1.3764
• Prev. Close: 1.3763
• % chg. over the last day: -0.01%

According to Citibank forecasts, inflation expectations in the UK will rise by 4.4% over the next year. Gasoline prices in the UK, like all over Europe, are at their highest levels in a decade.

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 British currency looks more confident than Euro due to a direct correlation with oil prices. 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 is likely to be broken.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 113.70
• Prev. Close: 114.14
• % chg. over the last day: +0.39%

The Bank of Japan’s monetary policy is now aimed at stimulating the country’s economy and fighting the effects of the pandemic. The Bank of Japan does not plan to cut its stimulation programs soon, so the USD/JPY currency pair tends to grow fundamentally.

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. The price was corrected near the moving average line to the resistance level where was a bounce. The price has now broken through the local downtrend line, indicating the growing pressure of buyers. The MACD indicator has become inactive. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zones on the lower timeframes. Sell positions should be considered from the resistance levels of a higher timeframe, given 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: 1.2377
• Prev. Close: 1.2388
• % chg. over the last day: +0.09%

The Canadian dollar is a commodity currency, so USD/CAD is highly dependent on the dynamics of the dollar index and oil prices. Both the dollar index and oil prices slightly increased yesterday. As a result, the USD/CAD currency pair is trading flat. Today the Bank of Canada will report on its monetary policy and interest rate decision. Volatility on currency pairs with the Canadian dollar will be higher.

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 USD/CAD currency pair trend is bearish. The price is once again beginning to show a narrowing of liquidity in the form of a triangle. Under such market conditions, it is better to look for sell deals from the resistance levels above the moving average. Buy trades should be considered only on lower time frames from the initiative zone of buyers or from support levels of a higher timeframe.

Alternative scenario:

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