The Analytical Overview of the Main Currency Pairs on 2021.11.01

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1680
• Prev. Close: 1.1561
• % chg. over the last day: -1.03%

Germany’s Q3 GDP increased by 1.8%, a growth of 2.2% was expected. The consumer price index in Europe reached 4.1%, the highest level since 2008. Core inflation (excluding food and energy prices) in Europe reached 2.1%, the highest level since 2003. Against the background of inflation news, the euro sharply fell on Friday.

Trading recommendations

• Support levels: 1.1548,1.1502,1.1453
• Resistance levels: 1.1593,1.1618,1.1645,1.1667,1.1717,1.1772

From the technical point of view, the EUR/USD on the hour timeframe has changed to bearish. On Friday, the price broke through the priority change level and consolidated lower. The MACD indicator has become negative, and sellers’ pressure remains high. Under such market conditions, traders should consider selling positions from the resistance levels near the moving average. It is best to look for buy trades from the support levels of the higher timeframe.

Alternative scenario:

if the price breaks out through the 1.1667 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: 1.3791
• Prev. Close: 1.3678
• % chg. over the last day: -0.82%

The euro’s fall on Friday contributed to the growth of the dollar index by 0.8%, which led to a decrease in other quotes against the US dollar. The GBP/USD quotes decreased by 0.82%. Against the GBP, the euro fell by 0.4%.

Trading recommendations

• Support levels: 1.3685,1.3648,1.3617,1.3532,1.3457,1.3360
• Resistance levels: 1.3748,1.3831,1.3886

On the hourly time frame, the bullish trend on GBP/USD is very close to a reversal. The price is trading right at the priority change level, and, given the high sellers’ pressure, it is very likely that the trend on the GBP/USD currency pair will change to a bearish one. The MACD indicator has become negative, with no sign of a reversal. Buy trades should be considered only from the support levels of the higher timeframe. It is best to look for sell deals from the resistance levels around the moving average.

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: 113.51
• Prev. Close: 113.89
• % chg. over the last day: +0.33%

Japanese stock indices increased after the ruling coalition won the election, which was better than many had expected, opening the way for Fumio Kishida’s administration to begin implementing economic stimulus. The Japanese yen opened with a slight decline, but it should be noted that the yen is strongly correlated with the dollar index, which sharply increased on Friday.

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 is trading in a wide price corridor. The MACD indicator has become positive, but there are the first signs of buyer’s weakness. 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: 1.2343
• Prev. Close: 1.2377
• % chg. over the last day: +0.27%

The Canadian dollar is a commodity currency, so the USD/CAD currency pair is highly dependent on the dynamics of the dollar index and oil prices. The dollar index sharply increased on Friday, while oil prices remained at the same level. As a result, the USD/CAD quotes increased. Canada’s economy increased by 1.9% in annual terms in the third quarter, but analysts expected more confident GDP growth.

Trading recommendations

• Support levels: 1.2352,1.2306,1.2260
• Resistance levels: 1.2402,1.2518,1.2565,1.2628,1.2729,1.2774

From the technical point of view, the trend of the USD/CAD currency pair is bearish. But the pressure of buyers is increasing, and the price is approaching the priority change level. Under such market conditions, it is better to look for sell deals from the resistance levels of the higher timeframe. Buy trades should be considered from the support levels, given there is the buyers’ initiative.

Alternative scenario:

if the price breaks out through the 1.2428 resistance level and fixes above, the uptrend will likely resume.