The Analytical Overview of the Main Currency Pairs on 2021.05.20

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2222
  • Prev Close: 1.2175
  • % chg. over the last day: -0.38%

On Wednesday, during the Fed statement, the EUR/USD currency pair began a corrective movement. The divergence of the higher timeframe has worked perfectly.

Trading recommendations
  • Support levels: 1.2168, 1.2138, 1.2115, 1.2074, 1.2026, 1.2002, 1.1957, 1.1835
  • Resistance levels: 1.2212, 1.2243

The trend is still bullish. The price is trading above the moving average, but the MACD indicator has become inactive. At the moment, there is a correction within the trend, so traders have good opportunities to look for long deals.

Alternative scenario: if the price breaks down through the 1.2138 support level and holds below, the general uptrend is likely to be broken.

EUR/USD
News feed for 2021.05.20:
  • – ECB President Lagarde Speaks at 15:00 (GMT+3);
  • – US Jobless Claims (w/w) at 15:30 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.4184
  • Prev Close: 1.4110
  • % chg. over the last day: -0.52%

Like the euro, the British pound went down for a correction. During the FOMC minutes, the GBP/USD price fell sharply to the support level of 1.4110, but the buyers' reaction was weak.

Trading recommendations
  • Support levels: 1.4110, 1.4075, 1.3996, 1.3913,1.3835, 1.3801, 1.3756, 1.3690
  • Resistance levels: 1.4207

Technically, the trend remains bullish. The price is still above the moving average, but the MACD indicator went into the negative area. It is recommended for traders to look for buy deals from the support levels.

Alternative scenario: if the price breaks down through the 1.4075 support level and holds below, the bullish scenario is likely to be canceled.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.87
  • Prev Close: 109.21
  • % chg. over the last day: +0.31%

The USD/JPY currency pair showed a V-reversal pattern at the end of the trading day. Initially, the price declined in the US session. But during the FOMC news, the price pulled back.

Trading recommendations
  • Support levels: 108.87, 108.66, 108.44, 108.19,107.77, 107.47, 107.04
  • Resistance levels: 109.40, 109.64, 109.95, 110.51

While the price is below the 109.40 level, the trend remains bearish on the H1 timeframe. It is important for the sellers not to let the price consolidate before this level now. Otherwise, the probability of a breakout and resumption of the upward trend will sharply increase. Traders are better to look for sell positions from the resistance levels, but they can also consider long deals with short targets on lower timeframes.

Alternative scenario: if the price rises above 109.40, the general uptrend 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: 1.2057
  • Prev Close: 1.2131
  • % chg. over the last day: +0.61%

The USD/CAD currency pair came close to activate an alternative scenario and move into the growth phase. During the FOMC statement, the price reached the level of change of priority by the impulsive move, and the reaction of sellers is still very weak.

Trading recommendations
  • Support levels: 1.2066, 1.1944
  • Resistance levels: 1.2137, 1.2251, 1.2321, 1.2388, 1.2414, 1.2519

The MACD indicator moved into the positive area, the price consolidated near the moving average. Despite the continuing downward trend, the buyers are much more aggressive, so traders can consider both long deals from the support levels and short deals from the resistance levels.

Alternative scenario: if the price breaks out through the 1.2137 resistance level and holds above, a local corrective uptrend is likely to form.

USD/CAD
News feed for 2021.05.20:
  • – Canada BOC Governor Tiff Macklem Speaks at 18:00 (GMT+3).

by Justforex, 2021.05.20

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.

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