The Analytical Overview of the Main Currency Pairs on 2021.05.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2010
  • Prev Close: 1.2005
  • % chg. over the last day: -0.04%

The EUR/USD currency pair showed weak activity on Wednesday. The price is under the moving average and continues to slowly slide down. Buyers manage to hold the 1.2002 support level.

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 keeps signaling a divergence. Considering the positive news from Europe about the acceleration of the vaccination, the market conditions are in favor of buyers, so traders should expect a rebound.

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

News feed for 2021.05.06:
  • – ECB President Christine Lagarde Speaks at 14:25 (GMT+3);
  • – US Unemployment Claims at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3885
  • Prev Close: 1.3908
  • % chg. over the last day: +0.16%

The GBP/USD currency pair is trading in a narrow range. A bunch of important news from the UK is expected to shake up the price today. Considering that the buyers are pushing the price to the 1.3835 resistance level and no changes are planned in monetary policy, the price is likely to resume growth.

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 until the news is released.

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.

News feed for 2021.05.06:
  • – UK Final Services PMI at 11:00 (GMT+3);
  • – Bank of England Interest Rate Decision at 14:00 (GMT+3);
  • – Asset Purchase Facility at 14:00 (GMT+3);
  • – MPC Asset Purchase Facility Votes at 14:00 (GMT+3);
  • – BOE Monetary Policy Report at 14:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.30
  • Prev Close: 109.18
  • % chg. over the last day: -0.11%

The USD/JPY currency pair continues to stay in a flat, without any changes. Japan and China are going back to work today after a long weekend, so traders should expect an increase in volatility.

Trading recommendations
  • Support levels: 108.87, 108.44, 108.19,107.77, 107.47, 107.04
  • Resistance levels: 109.49, 109.64, 109.95, 110.51

The price is still trading above the moving average, but the MACD indicator is completely inactive. Under such market conditions, the best strategy would be to trade intraday deals with short targets.

Alternative scenario: if the price drops below 108.44, the general downtrend will continue with a high probability.

There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2307
  • Prev Close: 1.2265
  • % chg. over the last day: -0.34%

The USD/CAD currency pair continues to trade in the range. Buyers are actively defending the 1.2270 support level. The price fails to break down and holds below. The MACD indicator is showing a divergence, so traders should expect a rebound.

Trading recommendations
  • Support levels: 1.2270, 1.2165
  • Resistance levels: 1.2321, 1.2388, 1.2414, 1.2519, 1.2618

The trend remains bearish on USD/CAD, but the movement has switched to a flat structure. Such scenario is likely to last till Friday, where the interest rate news is expected. The best strategy in a wide flat would be to trade from the borders of the corridor. But taking into account the bearish context, it makes more sense to look for sell positions from resistance levels, despite a possible rebound upwards.

Alternative scenario: if the price breaks through the 1.2414 resistance level and holds above, a local corrective uptrend is likely to form.

There is no news feed for today.

by Justforex, 2021.05.06

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
10 most stable forex pairs to trade in 2021
If you are interested in forex but have never tried trading before, sooner or later, you come across the question of what currency pair is safe to trade so that you don’t lose half of your deposit on your first position. And the answer is as simple as can be, the safest currency pairs are the most stable ones. Read on to learn which currency pairs are the best to start your trading journey.
Read more
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