The analytical overview of the main currency pairs


The EUR / USD currency pair

Technical indicators of the currency pair:

Previous opening: 1.1329
Previous Close: 1.1236
% mod. on the last day: -0.83%

The German producer price index, which shows the rate of inflation between factories and large companies, hit a new all-time high of 19.2% on an annualized basis. High energy prices remain a major factor in the rise in inflation. Energy prices have increased 49.4% this year due to a sharp increase in natural gas prices of 83.4%. Spain’s inflation rate reached 5.5%. It’s less than expected, but inflation is at its highest level in 29 years, and rising faster than wages. The consumer price index in the euro area remained at 4.9% as expected.

Trading recommendations

Support levels: 1.1230, 1.1168
Resistance levels: 1.1265, 1.1323, 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR / USD over the hourly period is still bearish. The price is negotiated in a wide corridor. Against the backdrop of a strong strengthening of the dollar index on Friday, EUR / USD quotes fell sharply. The MACD indicator has turned negative, pressure from sellers prevails. In such market conditions, traders should consider selling positions from resistance levels around the moving average. Buy transactions can be considered on shorter time frames after pricing above the 1.1265 level.

Alternative scenario: If price breaks through the resistance level of 1.1360 and fixes above, the medium term uptrend is likely to resume.

The GBP / USD currency pair

Technical indicators of the currency pair:

Previous opening: 1.3318
Previous Close: 1.3235
% mod. on the last day: -0.63%

UK retail sales rose 1.4% in November; an increase of 0.8% was expected. Omicron strain infections in the UK continue to rise ahead of the Christmas holidays. Official figures show a 52% increase in illnesses over the past week. Across the country, Premier League matches, which have always been considered the most popular entertainment for Britons during the Christmas holidays, have started to be canceled.

Trading recommendations

Assistance levels: 1.3220, 1.3189
Resistance levels: 1.3272, 1.3301, 1.3365, 1.3434, 1.3507, 1.3575, 1.3685

Over the hourly period, the trend in GBP / USD is still bullish. But the rise in the dollar index led to the weakening of the British currency. The MACD indicator has turned negative, pressure from sellers prevails. In such market conditions, traders should consider buying positions from the nearest support levels, but only with additional confirmation in the form of a buyer’s initiative. Sell ​​trades can be viewed from resistance levels near the moving average.

Alternative scenario: If price breaks through the support level of 1.3189 and consolidates below, the bearish scenario will likely resume.

The USD / JPY currency pair

Technical indicators of the currency pair:

Previous opening: 113.62
Previous Close: 113.70
% mod. on the last day: + 0.07%

Fundamentally, the Bank of Japan’s monetary policy is aimed at active economic stimulus, while the US Federal Reserve, on the contrary, accelerated the reduction of the quantitative easing program last week. Such a situation favors further growth in USD / JPY quotes.

Trading recommendations

Assistance levels: 113.30, 112.62, 112.30
Resistance levels: 113.95, 114.17, 115.15, 115.50

The global trend of the USD / JPY currency pair is bearish. Price failed to break through the priority change level f and came back into the wide corridor again. In such market conditions, traders can look for short positions from the resistance level of 113.95, but with further confirmation. Buy positions should be considered from support level 113.30, but with additional confirmation in the form of a buyer’s initiative or after the price exceeds the priority change level.

Alternative scenario: If the price rises above 114.17, the uptrend will likely resume.

The USD / CAD currency pair

Technical indicators of the currency pair:

Previous Open: 1.2773
Previous Close: 1.2887
% mod. on the last day: + 0.89%

Federal Reserve officials said on Friday that the first interest rate hike could take place as early as March. Investors began to reorient their portfolios towards “cash”, which caused the dollar index to rise. The rising dollar has caused major currencies to fall against the US dollar. The Canadian dollar is a base currency, so it is highly correlated with both the dollar index and oil prices. Oil prices are falling sharply amid the rapid spread of the Omicron strain. All of these factors are weakening the Canadian dollar.

Trading recommendations

Support levels: 1.2828, 1.2721, 1.2677, 1.2638
Resistance levels: 1.2918, 1.2951

From a technical point of view, the trend of the USD / CAD currency pair is bullish. The MACD indicator has turned positive, the pressure from buyers has increased, there is no sign of a reversal at this time. In such market conditions, it is best to look for offers to buy from support levels near the moving average on lower time frames. Offers to sell should be viewed from the false breakout area, but with additional confirmation in the form of a sellers initiative.

Alternative scenario: If price breaks through the support level of 1.2766 and corrects below, the downtrend will likely resume.

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