The Analytical Overview of the Main Currency Pairs on 2021.11.10

The EUR/USD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.1585
• Prev. Close: 1.1594
• % chg. over the last day: +0.08%

The ECB balance continues to grow rapidly. Total assets increased by another €16.6 billion to a new level of €8,382.7 billion. The ECB will continue to print money as part of its stimulus program until the end of the year. The index of economic sentiment in Germany and the Eurozone is rising again. Experts forecast the resumption of economic growth and lower inflation in both Germany and the eurozone in the first quarter of 2022.

Trading recommendations

• Support levels: 1.1573,1.1535,1.1502,1.1453
• Resistance levels: 1.1613,1.1645,1.1667,1.1717,1.1772

From the technical point of view, the EUR/USD on the hour time frame is bearish. The MACD indicator has become inactive. Under such market conditions, traders should consider sell positions from the resistance levels near the moving average. There is no optimal entry point for buy trades at the moment.

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: 1.3561
• Prev. Close: 1.3556
• % chg. over the last day: -0.04%

According to the Institute for Economic and Social Research (NIESR), the UK consumer price index will peak at around 5% in Q2 2022. UK GDP will grow by 4.7% in 2022 and 6.9% in 2021.

Trading recommendations

• Support levels: 1.3508,1.3360
• Resistance levels: 1.3616,1.3685,1.3748,1.3780,1.3831,1.3886

On the hourly time frame, the trend on GBP/USD is bearish. The MACD indicator has become inactive. It is best to look for sell deals from the resistance levels around the moving average. There is no optimal entry point for buy trades at the moment.

Alternative scenario:

if the price breaks out through the 1.3685 resistance level and consolidates above, the bullish scenario will likely resume.

The USD/JPY currency pair

Technical indicators of the currency pair:

• Prev. Open: 113.21
• Prev. Close: 112.87
• % chg. over the last day: -0.30%

At the moment there are no fundamental reasons for the USDJPY quotes to go down in the mid-term, as the Bank of Japan has kept its monetary policy soft until the end of the year, while the Fed is already cutting QE. Moreover, if the US consumer price index is high today, it will lead to a rise in the dollar index and USDJPY quotes.

Trading recommendations

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

The global trend on the USD/JPY currency pair is bullish. But the local trend is strictly bearish at the moment. Under such market conditions, it’s better to look for buy positions from the buyers’ initiative zone on the higher timeframes. Sell positions should be considered from the resistance levels, given there is sellers’ initiative.

Alternative scenario:

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

The USD/CAD currency pair

Technical indicators of the currency pair:

• Prev. Open: 1.2441
• Prev. Close: 1.2436
• % chg. over the last day: -0.04%

The Canadian dollar is a commodity currency, so the USD/CAD currency pair highly depend on the dynamics of the dollar index and oil prices. Both the dollar index and oil prices increased yesterday. As a result, the USD/CAD currency pair is trading flat. Fundamentally, the Canadian dollar is tending to strengthen now as oil prices are rising and the Canadian central bank has begun to cut its stimulus program. On the other hand, a rise in the dollar index may eliminate these factors.

Trading recommendations

• Support levels: 1.2428,1.2352,1.2306,1.2260
• Resistance levels: 1.2518,1.2565,1.2628,1.2729,1.2774

From the technical point of view, the USD/CAD currency trend has changed to bullish. The price broke through the priority change level and consolidated above. The MACD indicator has become inactive, and there are no signs of reversal. Under such market conditions, it is better to look for buy trades from the support levels, given there is the buyers’ initiative. Sell deals should be considered from the resistance levels of the higher time frame.

Alternative scenario:

if the price breaks down through the 1.2351 support level and fixes below, the downtrend will likely resume.