The Analytical Overview of the Main Currency Pairs on 2021.04.07

April 7, 2021

by JustForex

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1813
  • Prev Close: 1.1874
  • % chg. over the last day: +0.52%

The euro rose sharply against the US dollar amid the publication of the latest research by the Sentix Institute. A sharp rise in investor optimism about the European economy supported the bulls in the pair. The decline in the dollar index provides additional support to the growth of EUR/USD.

Trading recommendations
  • Support levels: 1.1704, 1.1688
  • Resistance levels: 1.1889, 1.1990

The main scenario for EUR/USD is buying. The MACD continues to show convergence, which indicates a high likelihood of continued growth in the pair. The ADX shows the development of the trend potential, and the price is fixed above the moving averages. Taken together, all indicators show a steady movement in the north direction.

Alternative scenario: if the price consolidates below the level of 1.1790, the pair may return to the decline to 1.1704.

EUR/USD
News feed for 2021.04.07:
  • – FOMC Meeting Minutes Release at 21:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3896
  • Prev Close: 1.3820
  • % chg. over the last day: -0.55%

The sterling showed negative dynamics on Tuesday. It was the rare case when the pair moved in the opposite direction relative to the euro. The day closed in the red, completely neutralizing Monday’s growth, amid a statement by Prime Minister Boris Johnson about air travel restrictions.


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Trading recommendations
  • Support levels: 1.3705, 1.3680
  • Resistance levels: 1.3848, 1.3929

The main scenario for GBP/USD is selling. The ADX doesn’t react to the fall on Tuesday, which casts doubt on a further decline. At the same time, the price has consolidated below the moving averages, and the MACD is below zero. Taken together, the technical indicators show a slow decline.

Alternative scenario: if the pair consolidates above 1.3848, the pound may move upward to 1.3929.

GBP/USD
News feed for 2021.04.07:
  • – The UK Services Purchasing Managers’ Index (Mar) at 11:30 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.18
  • Prev Close: 109.74
  • % chg. over the last day: -0.40%

The dollar-yen pair continued to decline amid mixed dynamics on stock exchanges and a drop in government bond yields. Considering the latest research by Sentix, the decline may stop soon since there are no fundamental reasons for selling risky assets.

Trading recommendations
  • Support levels: 109.59, 109.38
  • Resistance levels: 110.32, 110.98

The main scenario is selling. The price is still fixed below the moving averages, and convergence is visible on the MACD. But the ADX shows falling bearish pressure. It indicates the likely completion of the correction, and the first support level may limit the decline.

An alternative scenario implies the price fixing above 110.32. In this case, the pair may resume growth to 109.98.

USD/JPY
News feed for 2021.04.07:
  • – FOMC Meeting Minutes Release at 21:00 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2522
  • Prev Close: 1.2563
  • % chg. over the last day: +0.33%

The pair stopped the decline on Tuesday and showed intraday gains amid declining oil prices. WTI crude oil has consolidated below $60 per barrel and is trading near the lows of early March, putting pressure on the Canadian currency.

Trading recommendations
  • Support levels: 1.2501, 1.2466
  • Resistance levels: 1.2629, 1.2646

The main scenario is buying. Specifications have changed significantly since Monday. The price confidently consolidated above the moving averages, while the MACD moved into a positive area, and convergence formed at the same time. The ADX indicates low strength of the trend potential.

Alternative scenario: if the price consolidates below 1.2550, the pair may resume its decline to 1.2501.

USD/CAD
News feed for 2021.04.07:
  • – The Canada Ivey Purchasing Managers Index (PMI) at 17:00 (GMT+3);
  • – US Crude Oil Reserves at 17:30 (GMT+3).

by JustForex

 

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.