Analytical Overview Of The Main Currency Pairs - Friday, March 26

The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.1813
  • Prev Close: 1.1768
  • % chg. over the last day: -0.38%

Higher-than-expected US GDP data pushed the euro down even further. The yield spread between German Gilts and US Treasuries narrowed sharply by almost 40 basis points to -200.9%. It indicates the likely continuation of the pair's fall in the medium term.

Trading recommendations

  • Support levels: 1.1746, 1.1688
  • Resistance levels: 1.1889, 1.1990

The main scenario for EUR/USD is selling. The ADX shows strong bearish pressure on the H4 timeframe. On the D1, the trend potential index shows a change in direction from north to south. But the H1 readings indicated an impending pullback, as the ADX declined during the last downward impulse, and a divergence formed on the MACD.

Alternative scenario: if the price manages to gain a foothold above the level of 1.1851, the pair may start a corrective rise to 1.1889 or higher.

EUR/USD

News feed for 2021.03.26:

  • – The German Ifo Business Climate Index (Mar) at 11:00 (GMT+2);
  • – The US University of Michigan Consumer Sentiment Index (Mar) at 16:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3685
  • Prev Close: 1.3737
  • % chg. over the last day: +0,38%

The sterling stood out from all the group 10 currency pairs that declined against the dollar. The beginning of negotiations between the EU and the UK for the market is a signal for the warming of the relationship between the two sides, as a result of which the British currency is again showing signs of developing growth.

Trading recommendations

  • Support levels: 1.3680, 1.3610
  • Resistance levels: 1.3875, 1.3997

The main scenario for GBP/USD is buying. The ADX has changed direction abruptly and now shows significant bullish pressure. The price was able to break through the SMA 100 moving average, and the MACD entered the positive area, which indicated at least a stop of the fall.

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Disclosure: 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, ...

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