The Analytical Overview of the Main Currency Pairs on 2021.07.26

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1769
  • Prev Close: 1.1771
  • % chg. over the last day: +0.02%

Compared to Friday, the situation on the EUR/USD currency pair has not changed. Last week, the ECB hinted at a longer period of monetary support, as a new wave of the coronavirus pandemic could pose a risk to eurozone economic recovery. But Friday's business activity (PMI) data showed a positive growth trend, jumping to the highest level since June 2006.

Trading recommendations
  • Support levels: 1.1761, 1.1746, 1.1609
  • Resistance levels: 1.1822, 1.1834, 1.1879, 1.1934, 1.1969

From the technical point of view, the trend is still bearish. Now the price is trading in a narrow range within a broader 1.1761-1.1823 price range. The negative situation for the European currency remains unchanged, but short-term upward movements are not excluded. In such market conditions, traders should look for the sell positions from the resistance levels. Buy positions can be considered only on the intraday timeframes after the price breaks through the narrow range upwards.

Alternative scenario: if the price breaks through the 1.1879 resistance level and fixes above, the general uptrend is likely to be resumed.

EUR/USD
News feed for 2021.07.26:
  • – Germany Ifo Business Climate Index (m/m) at 11:00 (GMT+3);
  • – US New Home Sales (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3749
  • Prev Close: 1.3741
  • % chg. over the last day: +0.06%

The British pound looks more confident than the euro. But due to the rapid spread of the delta strain in the UK and across Europe, economic growth forecasts for July are expected to be weak as more people are forced to self-isolate in accordance with government regulations. Because of a growing shortage of supermarket goods in the UK, food retail staff won’t be quarantined for ten days if someone has been in close contact with the infected person.

Trading recommendations
  • Support levels: 1.3721, 1.3676 ,1.3641, 1.3614, 1.3525
  • Resistance levels: 1.3805, 1.3899, 1.3923, 1.4002, 1.4075, 1.4101

The trend on the GBP/USD currency pair is downward on the H1 timeframe. But buyers are still able to keep the course from falling. The MACD indicator has become inactive. Under such market conditions, traders are better to look for both sell deals from the resistance levels within the trend and buy deals from the support levels, but only on the intraday timeframes and with short targets.

Alternative scenario: if the price breaks through the 1.3839 resistance level and consolidates above, the bearish 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: 110.12
  • Prev Close: 110.54
  • % chg. over the last day: +0.38%

The manufacturing activity of Japan showed the weakest growth over the past five months in July as the country is faced with serious challenges because of COVID-19 cases, which are forcing the government to extend restrictions and hinder economic recovery. Meanwhile, the services sector of Japan declined even more sharply in July. The stronger contraction in this sector came on the back of stronger declines in production, new orders, and new export orders.

Trading recommendations
  • Support levels: 110.17, 109.70, 109.19, 108.65
  • Resistance levels: 110.41, 110.73, 111.06, 111.48, 110.73, 112.18

In terms of technical analysis, the situation has become uncertain. On the one hand, the price broke through the priority change level on Friday. On the other hand, the price failed to consolidate higher and returned back under the level. Traders are better to consider intraday trading now. For buy positions, it's better to wait for a pullback to the nearest support level. Sell positions should be considered only from resistance levels and with short targets.

Alternative scenario: if the price falls below 109.70, the downtrend is likely to be resumed.

USD/JPY
There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2562
  • Prev Close: 1.2560
  • % chg. over the last day: -0.01%

The situation with the USD/CAD currency pair has not changed. The Canadian dollar is a commodity currency and is highly dependent on oil price movements. Oil is now trading in the narrow price corridor, causing a consolidation on the USD/CAD currency pair. Analysts expect a short-term downward correction of oil, which will lead to an increase in USD/CAD quotes. Statistical Department of Canada released the data on retail sales on Friday. In May, receipts fell by 2.1% due to the COVID-19 shutdown, but sales increased by 4.4% as restrictions in the country were weakened. Also, the Federal agency reported on creating 230,700 new jobs for June.

Trading recommendations
  • Support levels: 1.2561, 1.2519, 1.2448, 1.2404, 1.2347, 1.2312
  • Resistance levels: 1.2671, 1.2787, 1,2951

Technically, the trend remains bullish. But the price is trading right at the priority change level. The MACD indicator is inactive. Traders are better to play it safe and take action only after the price moves to one side of the narrow price range.

Alternative scenario: if the price breaks through the 1.2561 support level and fixes below, the downtrend is likely to be resumed.

USD/CAD
There is no news feed for today.

by Justforex, 2021.07.26

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