The Analytical Overview of the Main Currency Pairs on 2021.05.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2003
  • Prev Close: 1.2062
  • % chg. over the last day: +0.49%

The EUR/USD currency pair was bullish on Thursday. Positive news background in Europe played a key role in it. Buyers managed to protect the support level of 1.2002 and create a new level at 1.2027 point.

Trading recommendations
  • Support levels: 1.2027, 1.2002, 1.1957, 1.1835
  • Resistance levels: 1.2074, 1.2108, 1.2145, 1.2176, 1.2212, 1.2243

The price held above the moving average, while the MACD indicator moved into the positive zone. At the moment, a local up-trend has formed, so traders should look for buy positions up to the key resistance level of 1.2108.

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

EUR/USD
News feed for 2021.05.07:
  • – ECB President Christine Lagarde Speaks at 13:00 (GMT+3);
  • – US Unemployment Rate at 15:30 (GMT+3);
  • – US Non-Farm Employment Change at 15:30 (GMT+3);
  • – US Average Hourly Earnings at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3891
  • Prev Close: 1.3898
  • % chg. over the last day: +0.05%

The price of GBP/USD remained in a flat. Volatility only increased on yesterday's news. The sellers managed to hold the resistance level of 1.3835.

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 “Non-Farm” 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.

GBP/USD
News feed for 2021.05.07:
  • – BOE Deputy Governor for Monetary Policy Ben Broadbent Speaks at 14:15 (GMT+3);
  • – MPC Member Andy Haldane Speaks at 14:15 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.17
  • Prev Close: 109.04
  • % chg. over the last day: -0.11%

The USD/JPY currency pair declined slightly on Thursday, but volatility is still low. Most likely the situation will not change until the release of the US macrostatistics today.

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 downtrend is likely to resume.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2265
  • Prev Close: 1.2146
  • % chg. over the last day: -0.97%

The USD/CAD currency pair fell by 0.97% on Thursday. The price held below the support level and went further down. The divergence on the MACD indicator did not work properly this time.

Trading recommendations
  • Support levels: 1.2138
  • Resistance levels: 1.2251, 1.2321, 1.2388, 1.2414, 1.2519, 1.2618

The trend remains bearish for USD/CAD. The price will not make a deep pullback with such a strong trend, so traders should be looking for sell positions from resistance levels on intraday timeframes.

Alternative scenario: if the price breaks through the 1.2321 resistance level and holds above, a local corrective uptrend is likely to form.

USD/CAD
News feed for 2021.05.07:
  • – Unemployment Rate at 15:30 (GMT+3);
  • – Employment Change at 15:30 (GMT+3);
  • – Part-Time Employment Change at 15:30 (GMT+3);
  • – Ivey PMI at 17:00 (GMT+3).

by Justforex, 2021.05.07

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
Social Trading: What Is It and How To Make Money Using It
Since the trading migrated online, the traders have been communicating on the online forums and other special services. Some traders teach their less experienced peers how to earn on trading, mitigate related risks, and build their careers in trading. This trend is known as social trading.
Read more
Copy Trading: Important Risks and Advantages to Take into Consideration
Copy trading is one of the popular trading strategies that allows traders to copy in a step-by-step manner the trading moves of other traders, commonly considered to be experienced and successful. Copy trading is a good way to start a trading journey without conducting long time-consuming research of markets and instruments. However, mechanical copying of steps made by other traders has its particular risks and benefits. These risks and advantages, as well as useful tips and rules of copy trading, are gathered for your convenience in this article.
Read more
The Best Time to Trade Stocks In South Africa And A Glimpse Into The World Of Global Stock Exchanges
Trading stock is the first thing that comes to mind when the word 'trading' is uttered. You can keep them for years as a portfolio, building your wealth gradually, or try some risky market gambling for quicker profits. So, if you are interested in this solid and 'aristocratic' kind of assets, read this guide on how to perform stock trading in South Africa and when to do it for maximum effect.
Read more