Analytical Overview Of The Main Currency Pairs - Tuesday, May 4

10 and one 10 us dollar bill

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The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.2027
  • Prev Close: 1.2062
  • % chg. over the last day: +0.29%

After Friday's sharp drop, Monday was relatively calm for the EUR/USD currency pair. As a result, the price slightly recovered its positions and closed near moving average at the end of the trading session.

Trading recommendations

  • Support levels: 1.2021, 1.1957, 1.1835
  • Resistance levels: 1.2074, 1.2108, 1.2145, 1.2176, 1.2212, 1.2243

The MACD indicator quickly returned to zero marks, where it was on Friday before the fall. But the price returned only to the middle of the movement. Indicates a weakness of the buyers, so the most reasonable thing on the EUR/USD pair is to look for sell trades from the nearest resistance levels. But negative statistics are expected on the U.S. trade balance today, which might push the euro a little higher.

Alternative scenario: if the price breaks up through the 1.2108 level and holds above, the general uptrend will continue with a high probability.

News feed for 2021.05.04:

  • – US Trade Balance (m/m) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3807
  • Prev Close: 1.3907
  • % chg. over the last day: +0.72%

Despite the bank holiday in the U.K. on Monday, the GBP/USD currency pair rose by 100 pips. The price broke through and held above the moving average, but it failed to break out the 1.3913 level at the first attempt.

Trading recommendations

  • Support levels: 1.3864, 1.3835, 1.3801, 1.3756, 1.3690
  • Resistance levels: 1.3913, 1.3996, 1.4149

Sellers need to hold the 1.3913 resistance level to remain in the local downtrend. But given that the up movement to the resistance level was by impulse candlesticks, it is likely that the buyers will retake control.

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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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