The Analytical Overview of the Main Currency Pairs on 2021.01.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2104
  • Prev Close: 1.2162
  • % chg. over the last day: +0.48%

At the end of Thursday, EUR/USD demonstrated the presence of bullish strength, but the pair is still holding the position of a chasing one among the G10 currencies. Growth in German Bonds yields indicates a possible continuation of the upward movement, but a full renewal of the northern trend is still in question.

Trading recommendations
  • Support levels: 1.2077, 1.2059
  • Resistance levels: 1.2222, 1.2283

The main scenario for trading EUR/USD is buying. Northbound movement may be described as a slow one, but technical characteristics are indicative of a likely continuation. The ADX has reached a high point, which indicates the need for a pullback. The MACD is fixed in the positive zone, but no convergence has occurred, which proves the slow growth.

Alternative scenario: if the price manages to fix below the level of 1.2077, the pair may move to a decline to 1.1799.

EUR/USD
News feed for 2021.01.22:
  • – Germany Manufacturing PMI (Jan) at 11:30 (GMT+2);
  • – Eurozone Manufacturing PMI (Jan) at 12:00 (GMT+2).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3650
  • Prev Close: 1.3729
  • % chg. over the last day: +0.58%

On Thursday, the sterling continued to dominate and renewed its own records of the year. The bulls were encouraged by positive expectations of UK government support for workspaces. But in the Asian session, there is a rapid decline, which calls further growth into question.

Trading recommendations
  • Support levels: 1.3622, 1.3517
  • Resistance levels: 1.3716, 1.3744

The main scenario in GBP/USD is being traded in a sideways range between 1.3716 and 1.3622. The potential for a southward movement on the ADX is indicated as an increasing one. The fast move sent the MACD to zero and the SMA50 was broken-through, which brings the continuation of the upward movement into question. The pair is likely to stop between the first support and resistance levels.

Alternative scenario: if the pair fixes below 1.3622, the pair is likely to return to 1.3517. A break-through at 1.3716 will indicate a renewed growth.

GBP/USD
News feed for 2021.01.22:
  • – UK Retail Sales (MoM) (Jan) at 10:00 (GMT+2);
  • – UK Services PMI (Jan) at 12:30 (GMT+2).
Open Account

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 103.52
  • Prev Close: 103.48
  • % chg. over the last day: -0.03%

The USD/JPY was pretty close to the support level but it bounced back, almost forming a daily candle called "Doji". This usually holds out the prospect of a reversal, but seeing how the pair reacts to the situation of the stock market, the growth remains highly questionable. It’s not yet possible to single out any stable direction in the pair, both on the lower and higher time frames.

Trading recommendations
  • Support levels: 103.32, 102.89
  • Resistance levels: 104.09, 104.40

The main scenario is trading in a range between 104.09 and 103.32. The ADX began to react to both directions, and the frequent change of priorities indicates the development of lateral dynamics. The MACD is near zero, and the price is between the moving averages. All signals are neutral.

The alternative scenario assumes the price-fixing above 104.09. In this case, the pair may return to 104.40 or higher. A break-through of 103.32 will indicate a continued decline.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2632
  • Prev Close: 1.2633
  • % chg. over the last day: -0.01%

On Thursday, oil prices retreated from their highs slightly and continued their decline in the Asian session on Friday. At the same time, the dollar index is correcting, which together caused a northern pullback in the currency pair. But it’s difficult to talk about reversal yet.

Trading recommendations
  • Support levels: 1.2590, 1.2450
  • Resistance levels: 1.2797, 1.2834, 1.2875

The main scenario is purchases. The pair is prone to a rollback and, possibly, the deep one so far. The ADX showed a high potential for an upward movement intraday. The MACD has turned over sharply and is in the positive zone. But for now, the price is fixed below SMA 100. For a more accurate buy signal, it’s advisable to wait for a pullback to SMA 50 and see a rebound or for a break-through and price fixation above SMA 100.

Alternative scenario: if the price can fix below 1.2590, the pair may resume its southward direction.

USD/CAD
There is no news feed for today.

by Justforex, 2021.01.22

We recommend you to get acquainted with the daily overview of the news feed.

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, and/or a guarantee, and/or a forecast of future events.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Best Gold Trading Tips For Beginners
Gold is one of the most popular assets traded worldwide by investors, funds, and speculators who aim to profit from the price fluctuations or stand up against inflation. Unfortunately, many market participants fail to catch the wave and take full advantage of what the gold market can offer due to the lack of knowledge and experience. Are you planning to become the next gold trader? Learn how to trade gold in the most profitable way.
Read more
How to Become a Successful Forex Trader in Malaysia
With broad access to online brokerage services, everyone can become a trader these days. However, few people actually find success in FX. The reason might be that many of those who try trading skip some essential steps or simply do things wrong. Learn about the best ways to become a currency trader in Malaysia from this article.
Read more
How to Become a Forex Trader in Indonesia
Starting trading currencies in Indonesia is as easy as in the rest of the world. All you need to do is spend a few minutes of your time on opening a trading account and going through the verification process. However, this is hardly enough to start making money, let alone make a living out of forex trading. To learn about the best ways to trade currency in Indonesia, read this article.
Read more