The Analytical Overview of the Main Currency Pairs on 2021.10.29

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1602
  • Prev Close: 1.1683
  • % chg. over the last day: +0.70%

Even though inflation expectations in Europe are at their highest level since 2014, the European Central Bank did not change anything and kept its soft monetary policy until the end of the year. At the same time, ECB head Christine Lagarde pointed out during her speech that the PEPP program may end in March next year, and the period of higher inflation will last longer than previously expected. The euro quotes sharply jumped yesterday on the back of this news.

Trading recommendations
  • Support levels: 1.1640, 1.1616, 1.1580, 1.1548, 1.1502, 1.1453
  • Resistance levels: 1.1672, 1.1717, 1.1772, 1.1802, 1.1835

From the technical point of view, the EUR/USD on the hour timeframe is bullish. The price reached the priority change level yesterday but then sharply rebounded on the ECB news. The MACD indicator has become positive, and the buying pressure remains high. Under such market conditions, traders should consider buying positions from the nearest support levels. It is best to look for sell trades from the resistance levels of the higher timeframe.

Alternative scenario: if the price breaks down through the 1.1580 support level and fixes below, the mid-term uptrend will likely be broken.

EUR/USD
News feed for 2021.10.29:
  • – German GDP (q/q) at 11:00 (GMT+3);
  • – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+3);
  • – Eurozone GDP (q/q) at 12:00 (GMT+3);
  • – US Core PCE price index (m/m) at 15:30 (GMT+3);
  • – US Chicago PMI (m/m) at 16:45 (GMT+3);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+3).

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3739
  • Prev Close: 1.3794
  • % chg. over the last day: +0.40%

The impact of Brexit on the UK economy will be worse in the long run compared to the coronavirus pandemic, the chairman of the Office for Budget Responsibility has said. Forecasts show that the pandemic will reduce GDP by 2%, while leaving the EU will reduce potential UK GDP by about 4% in the long term, with inflation likely to reach 5% soon.

Trading recommendations
  • Support levels: 1.3763, 1.3736, 1.3685, 1.3648, 1.3617, 1.3532, 1.3457, 1.3360
  • Resistance levels: 1.3831, 1.3886

On the hourly time frame, the GBP/USD trend is bullish. The British currency is correlated with Brent crude oil prices, which slightly increased yesterday. The MACD indicator has returned to the positive zone. Buy trades should be considered only within the day and only from the initiative zone of the buyers. It is better to look for sell deals from the resistance levels of the higher timeframe, but after an additional confirmation in the form of a sellers' initiative.

Alternative scenario: if the price breaks down through the 1.3685 support level and consolidates below, the bullish scenario will likely be broken.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.80
  • Prev Close: 113.56
  • % chg. over the last day: -0.21%

In September, Japan's industrial production declined for the third month in a row, driven by global supply chain disruptions and a shortage of semiconductors. According to the data released by the government, industrial production in September fell by 5.4% for the month, the most significant drop since May. The unemployment rate did not increase and remained at a level of 2.8%.

Trading recommendations
  • Support levels: 113.42, 112.30, 111.53, 110.99, 110.65
  • Resistance levels: 114.48, 115.15

The primary trend of the USD/JPY currency pair is bullish. The price corrected from the moving average line to the resistance level. The MACD indicator has become inactive. Under such market conditions, it's better to look for buy positions from the buyers' initiative zones on the lower timeframes. Sell positions should be considered from the resistance levels of a higher timeframe, given sellers' initiative.

Alternative scenario: if the price falls below 112.30, the uptrend is likely to be broken.

USD/JPY
News feed for 2021.10.29:
  • – Japan Tokyo Core CPI (m/m) at 02:30 (GMT+3);
  • – Japan Industrial Production (m/m) at 02:30 (GMT+3);
  • – Japan Unemployment Rate (m/m) at 02:30 (GMT+3).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2354
  • Prev Close: 1.2342
  • % chg. over the last day: -0.10%

The Canadian dollar is a commodity currency, so the USD/CAD currency pair is highly dependent on the dynamics of the dollar index and oil prices. The dollar index decreased yesterday, while oil prices slightly increased. As a result, the USD/CAD currency pair is trading flat.

Trading recommendations
  • Support levels: 1.2306, 1.2260
  • Resistance levels: 1.2402, 1.2518, 1.2565, 1.2628, 1.2729, 1.2774

From the technical point of view, the trend of the USD/CAD currency pair is bearish. The price is trading in a wide corridor and is right in the middle, making it difficult to find good entry points. Under such market conditions, it is better to look for sell deals from the sellers' initiative zone. Buy trades should be considered from the support levels of a higher timeframe.

Alternative scenario: if the price breaks out through the 1.2518 resistance level and fixes above, the uptrend will likely resume.

USD/CAD
News feed for 2021.10.29:
  • – Canada GDP (m/m, q/q) at 15:30 (GMT+3).

by Justforex, 2021.10.29

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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