Analytical Overview Of The Main Currency Pairs - Wednesday, May 5

The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.2063
  • Prev Close: 1.2013
  • % chg. over the last day: -0.41%

The EUR/USD currency pair fell by 0.41% on Tuesday. The sellers were able to defend the resistance level of 1.2074, where the price showed a sharp downward reaction.

Trading recommendations

  • Support levels: 1.2002, 1.1957, 1.1835
  • Resistance levels: 1.2074, 1.2108, 1.2145, 1.2176, 1.2212, 1.2243

The MACD indicator started to signal a divergence, and the price failed to break through the support level of 1.2002. Such market conditions are not good for the sellers, so there is a high probability of a rebound in the next trading sessions.

Alternative scenario: if the price breaks out through the 1.2108 level and holds above, the general uptrend is likely to continue.

(Click on image to enlarge)


News feed for 2021.05.05:

  • – US ADP Non-Farm Employment Change (m/m) at 15:15 (GMT+3);
  • – US ISM Services PMI (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3906
  • Prev Close: 1.3885
  • % chg. over the last day: -0.15%

On Tuesday, the GBP/USD currency pair traded in a range near the moving average. Buyers are actively defending the 1.3835 support level, while sellers are holding the defense at the 1.3913 resistance level.

Trading recommendations

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

There is no optimal entry point for GBP/USD on the H1 timeframe right now. Traders need to wait for any of the participants to be active. The best strategy would be to either trade intraday local moves or stay out of position.

Alternative scenario: if the price breaks out through the 1.3913 resistance level and holds above, the bullish scenario is likely to become active again.

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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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