The EUR/USD currency pair
- Prev Open: 1.1585
- Prev Close: 1.1602
- % chg. over the last day: +0.14%
In September, German import prices increased to 17.7% in annual terms, the highest level since 1981. The European Central Bank will report today on its monetary policy plans. Economists think that due to high inflation, the ECB may prematurely start cutting the QE program.
- Support levels: 1.1580, 1.1548, 1.1502, 1.1453
- Resistance levels: 1.1616, 1.1655, 1.1671, 1.1717, 1.1772, 1.1802, 1.1835
From the technical point of view, the EUR/USD on the hour timeframe is bullish, but the price is trading flat near the priority change level. The MACD indicator has become inactive. Under such market conditions, traders should consider buying positions from the priority change level, but after an additional confirmation in the form of a buyers' initiative. It is best to look for sell trades from the resistance levels above the moving average.
Alternative scenario: if the price breaks down through the 1.1580 support level and fixes below, the mid-term uptrend will likely be broken.
- – German Unemployment Rate (m/m) at 10:55 (GMT+3);
- – Eurozone Monetary Policy Statement (m/m) at 14:45 (GMT+3);
- – Eurozone ECB Interest Rate Decision (m/m) at 14:45 (GMT+3);
- – Eurozone Press Conference at 15:30 (GMT+3);
- – US GDP (q/q) at 15:30 (GMT+3);
- – US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
- – US Pending Home Sales (m/m) at 17:00 (GMT+3).
The GBP/USD currency pair
- Prev Open: 1.3763
- Prev Close: 1.3736
- % chg. over the last day: -0.19%
The UK finance minister expects inflation to fall soon and the country's GDP to return to pre-crisis levels by the end of the year. Analysts think otherwise as the effect of accelerating inflation is not yet fully reflected in the latest reports.
- Support levels: 1.3736, 1.3685, 1.3648, 1.3617, 1.3532, 1.3457, 1.3360
- Resistance levels: 1.3831, 1.3886
On the hourly time frame, the GBP/USD trend is bullish. The British currency decreased yesterday, mainly due to oil quotes falling. The MACD indicator has become negative. Buy trades should be considered only within the day and only from the initiative zone of buyers. It is better to look for sell deals from the resistance levels of the higher timeframe, but after an additional confirmation in the form of a sellers' initiative.
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
- Prev Open: 114.14
- Prev Close: 113.80
- % chg. over the last day: -0.30%
The Bank of Japan (BoJ) kept interest rates unchanged and lowered its growth forecast for the current year. The BoJ also kept monetary policy conditions soft, forecasting inflation well above the 2% target for at least two more years. It indicated that it would lag behind other central banks in winding down its crisis management policy.
- 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 corrected from the moving average line to the resistance level. The MACD indicator became negative, which indicates a slight increase in seller's pressure. 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 there is sellers' initiative.
Alternative scenario: if the price falls below 112.30, the uptrend is likely to be broken.
- – Japan Retail Sales (m/m) at 02:50 (GMT+3);
- – Japan BOJ Monetary Policy Statement (m/m) (tentative);
- – Japan BOJ Outlook Report (m/m) (tentative);
- – Japan BOJ Interest Rate Decision (m/m) at 06:00 (GMT+3);
- – Japan Press Conference (tentative).
The USD/CAD currency pair
- Prev Open: 1.2382
- Prev Close: 1.2361
- % chg. over the last day: -0.17%
Canada's central bank left its key interest rate at 0.25%. It declared the termination of the bond purchase program, referring to Canada's strong economic growth, high vaccination rates, and a significant increase in employment. The Bank of Canada also signaled that it may raise interest rates as soon as April 2022 and said inflation would remain above target for most of next year due to rising energy prices and supply chain issues.
- Support levels: 1.2306, 1.2260
- Resistance levels: 1.2425 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. The price sharply decreased on the news of the beginning of the QE program reduction from the Bank of Canada. Under such market conditions, it is better to look for sell deals from the sellers' initiative zone. Buy trades should be considered from the support levels of a higher timeframe.
Alternative scenario: if the price breaks through the 1.2518 resistance level and fixes above, the uptrend will likely resume.
by , 2021.10.28
We recommend you to get acquainted with the daily overview of the news feed.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.
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