The Analytical Overview of the Main Currency Pairs on 2021.07.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1859
  • Prev Close: 1.1823
  • % chg. over the last day: -0.30%

The dollar index increased sharply yesterday, triggering a decline of the major currency pairs against the dollar. Despite positive data from Europe, the EUR/USD currency pair decreased by 0.3%, falling back to the 1.1809 support level.

Trading recommendations
  • Support levels: 1.1809
  • Resistance levels: 1.1847, 1.1911, 1.1973, 1.2002, 1.2050, 1.2109, 1.2144, 1.2174, 1.2212

The trend is still bearish. The price returned to the 1.1809 support level, forming a double-bottom pattern. But the initiative from the buyers is very weak. The MACD indicator is in the negative zone, and there are signs of divergence on the higher timeframes. Under such market conditions, it is better to trade intraday and look for buy trades from the support levels now. There is no good entry point for short positions at the moment.

Alternative scenario: if the price breaks out through the 1.1972 resistance level and fixes above, the general uptrend is likely to be resumed.

EUR/USD
News feed for 2021.07.07:
  • – Europe Economic Forecasts (q/q) at 12:00 (GMT+3);
  • – US JOLTs Job Openings (m/m) at 17:00 (GMT+3);
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3835
  • Prev Close: 1.3794
  • % chg. over the last day: -0.30%

The United Kingdom is a supplier of Brent crude oil and is ranked 13th among oil-producing countries. Yesterday's sharp drop in oil prices and strengthening of the dollar index caused the fall of GBP/USD quotes. Today's FOMC minutes will be crucial in terms of understanding where the British pound will go next.

Trading recommendations
  • Support levels: 1.3756
  • Resistance levels: 1.3835, 1.3923, 1.4002, 1.4075, 1.4101, 1.4138, 1.4191

The GBP/USD trend is bearish on the H1 timeframe. Buying pressure has become weak now; the price drops below the moving average. The MACD indicator is in the negative zone, but there are signs of divergence. Under such market conditions, traders are better to look for both sell trades from the resistance levels and buy trades from the support levels on the intraday timeframes.

Alternative scenario: if the price breaks out through the 1.3922 resistance level and consolidates above, the bearish scenario is likely to be canceled.

GBP/USD
News feed for 2021.07.07:
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.93
  • Prev Close: 110.61
  • % chg. over the last day: -0.29%

The futures on the Japanese yen, which has an inverse correlation with the USD/JPY currency pair, sharply increased yesterday. The most interesting thing is that the rise in the dollar index did not stop the fall of USD/JPY, which means that the Japanese yen is now strengthening more than the US dollar.

Trading recommendations
  • Support levels: 110.47, 109.83, 109.62, 109.31
  • Resistance levels: 110.73, 111.06, 111.48, 110.73, 112.18

From the point of view of technical analysis, the trend remains bullish. But the price reached the change priority level yesterday and tried to break down through it, but the buyers managed to defend their positions. Taking into account the divergence on the MACD indicator, traders are better to look for buy deals from the support levels. For confident selling, it is better to wait for a breakdown of 110.47 support level.

Alternative scenario: if the price falls below 110.47, the general downtrend is likely to be resumed.

USD/JPY
News feed for 2021.07.07:
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2337
  • Prev Close: 1.2456
  • % chg. over the last day: +0.96%

The USD/CAD currency pair increased by 0.96% by the end of the day. The USD/CAD quotes are highly dependent on two factors now: the dollar index and oil prices. Yesterday, the dollar index sharply increased while oil prices collapsed, which provoked a rapid jump of USD/CAD quotes.

Trading recommendations
  • Support levels: 1.2404, 1.2347, 1.2312, 1.2260, 1.2190
  • Resistance levels: 1.2478, 1.2519

Technically, the trend remains bullish. The price is trading above the moving average, but there is a strong deviation from the midline. The MACD indicator has returned to the positive zone with no signs of divergence. Under such market conditions, it is best to trade on the lower timeframes. Buyers need to wait for a slight pullback to the nearest support levels. Traders can also look for entry points on intraday timeframes for short positions, but only with short targets because it will be trading against the trend.

Alternative scenario: if the price breaks down through the 1.2260 support level and fixes below, the downtrend is likely to be resumed.

USD/CAD
News feed for 2021.07.07:
  • – Canada Ivey PMI (m/m) at 17:00 (GMT+3);
  • – US FOMC Meeting Minutes at 21:00 (GMT+3).

by Justforex, 2021.07.07

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
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