Analytical Overview Of The Main Currency Pairs - Monday, May 3

The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.2115
  • Prev Close: 1.2019
  • % chg. over the last day: -0.79%

On Friday, the EUR/USD currency pair fell by 0.79%, dropping almost 100 pips. This primarily was due to the released negative statistics on German GDP and Europe, where the strict lockdown scenario continues.

Trading recommendations

  • Support levels: 1.1994, 1.1957
  • Resistance levels: 1.2108, 1.2049, 1.2145, 1.2176, 1.2212, 1.2243

The price broke down the critical support level of 1.2088, activating the alternative scenario. The 1.2049 support level and the main uptrend line were also broken down by impulsive candles, as a result, the price held under the moving average. MACD went into the negative area. The best strategy for EUR/USD would be to look for short positions from resistance levels within the local downtrend.

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

News feed for 2021.05.03:

  • – German Final Manufacturing PMI (m/m) at 10:55 (GMT+3);
  • – US ISM Manufacturing PMI (m/m) at 17:00 (GMT+3);;
  • – Fed Chair Powell Speaks at 21:20 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3936
  • Prev Close: 1.3809
  • % chg. over the last day: -1.2%

The British currency fell more than 1% on Friday. The price moved below the moving average, and the MACD went deep below 0. In addition, the price easily passed three support levels at once. All these are signs of strong bearish pressure.

Trading recommendations

  • Support levels: 1.3794, 1.3756, 1.3690
  • Resistance levels: 1.3835, 1.3864, 1.3913, 1.3996, 1.4149

The price has consolidated below 1.3864, so it is best to focus on opening sell trades. But the entry price is not optimal right now, traders need to wait for a minor pullback to the resistance levels.

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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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