The Analytical Overview Of The Main Currency Pairs - Friday, Apr. 9

The EUR/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.1866
  • Prev Close: 1.1912
  • % chg. over the last day: +0.39%

The euro rose against the US dollar on the back of negative data on the labor market. Following the data release, the Treasury yield fell to 1.62%, which supported the bulls in the pair. In addition, the dovish comments of Jerome Powell and Fed’s board member James Bullard put additional pressure on the dollar.

Trading recommendations

  • Support levels: 1.1836, 1.1704
  • Resistance levels: 1.1915, 1.1990

The main scenario for EUR/USD is cautious buying. The technical picture looks bullish. The MACD is above zero, but divergence has formed, which indicates an approaching correction. The ADX showed a low reaction to the northern impulse, indicating a decrease in bullish pressure.

Alternative scenario: if the price consolidates below the level of 1.1836, the pair may return to the decline to 1.1704. A breakout of 1.1915 would indicate continued growth.

(Click on image to enlarge)

EUR/USD

News feed for 2021.04.09:

  • – The US Producer Price Index (PPI) (m/m) (Mar) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:

  • Prev Open: 1.3734
  • Prev Close: 1.3729
  • % chg. over the last day: -0.04%

The sterling declined on Thursday, despite the fall in the dollar index. It indicates the British currency’s weakness, which may show a steep peak in the event of a correction in the US dollar. The pressure is still coming from the AstraZeneca vaccine situation, which could undermine the UK’s vaccination program.

Trading recommendations

  • Support levels: 1.3705, 1.3680
  • Resistance levels: 1.3848, 1.3929

The main scenario for GBP/USD is selling. The pair has come close to the first support level. As long as the price is below the moving averages, the risk of a breakdown is high. But ADX shows a decrease in the potential of the southern trend, and divergence has formed on the MACD. It indicates a possible temporary stop in the southern movement.

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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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