The EUR/USD currency pair
- Prev Open: 1.2170
- Prev Close: 1.2137
- % chg. over the last day: -0.27%
EUR/USD dropped in price by the end of Monday. The business climate in Germany, which decelerated amid new restrictions, was one of the reasons for the decline. German Bonds yield decreased by 40 basis points to -0.550%, following the Treasury. It should be noted that the last-mentioned lost more, which raises doubts about the further southern movement of the pair.
- Support levels: 1.2077, 1.2059
- Resistance levels: 1.2222, 1.2283
The main scenario for trading EUR/USD is selling. The movement to the north stopped and the price was able to fix below the moving averages. The MACD moved into the negative zone. The ADX shows the growth of potential on the decline, which indicates a likely acceleration of the movement to the south.
Alternative scenario: if the price can fix above the level of 1.2156, the pair may move to an increase to 1.2222.
The GBP/USD currency pair
- Prev Open: 1.3677
- Prev Close: 1.3671
- % chg. over the last day: -0.04%
On Monday, the sterling began to show signs of a correction again. Stopping near annual highs, the price quickly declined, leaving a long shadow at the top of the daily chart. The fundamental background remains negative. The National Statistical Office released data on the rise of unemployment to 5.0% in November. With the consideration of the tightening of quarantine in January, the numbers are expected to continue to rise.
- Support levels: 1.3622, 1.3517
- Resistance levels: 1.3716, 1.3744
The main scenario in GBP/USD is selling. Long shadow at the top on the daily chart and continued decline in the Asian session could trigger a wave of cuts of the long positions. At the moment, the important level for the sterling is 1.3622, a break-through of which could send the pair to 1.3517 or below. The ADX grows and if it fixes below the specified price, the movement in the south direction may exceed 100 points before the first rollback.
Alternative scenario: if the pair fixes above 1.3683, the pair is likely to remain in the same range.
- – Average UK salary including bonuses (Nov) at 09:00 (GMT+2);
- – UK Jobless Claims Change (Dec) at 09:00 (GMT+2);.
The USD/JPY currency pair
- Prev Open: 103.75
- Prev Close: 103.74
- % chg. over the last day: -0.01%
USD/JPY price practically didn’t change on Monday. The intraday growth was completely erased, and a long shadow at the top formed on the daily chart. Treasury yields fell sharply, which could put pressure on the stock market and, accordingly, on the pair for the short time. On the other hand, bulls may be supported by the growth of the dollar index. The fundamental background remains neutral.
- Support levels: 103.32, 102.89
- Resistance levels: 104.09, 104.40
The main scenario is trading in a range between 104.09 and 103.32. Specifications are completely neutral. The North direction has only minimal priority, as the price is trying to fix above the moving averages, and the SMA 50 is directed up. Oscillators show zero values.
The alternative scenario assumes the price-fixing above 104.09. In this case, the pair may be able to return to 104.40 or higher. A break-through of 103.32 will indicate a continued decline.
- – United States CB Consumer Confidence Index (Jan) at 17:00 (GMT+2).
The USD/CAD currency pair
- Prev Open: 1.2710
- Prev Close: 1.2735
- % chg. over the last day: +0.20%
On Monday, the Canadian dollar fell against the US dollar and continues to fall amid a new wave of tightening quarantine in Canada. Everyone who has arrived in the country must have a confirmed negative coronavirus test and follow the 14-day quarantine rule.Shares of the country's airlines fell sharply because of this, and the Canadian dollar became the leader among the G10 currencies, falling against the dollar.
- Support levels: 1.2686, 1.2624
- Resistance levels: 1.2797, 1.2834, 1.2875
The main scenario is to purchase. The first and second growth waves are accompanied by a strong rise in the ADX, which indicates the likelihood of further rapid movement to the north. 1.2834 is an important level for the pair, consolidation above which cancels the medium-term southern movement and will signal the beginning of a deep correction.
Alternative scenario: if the price can fix below 1.2724, the pair may resume its southward direction.
by , 2021.01.26
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