The Analytical Overview of the Main Currency Pairs on 2021.12.13

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.1288
  • Prev Close: 1.1316
  • % chg. over the last day: +0.25%

The Euro showed some strength on Friday due to a decline in the dollar index on the US inflation data. Analysts had expected a rise in inflation, so the market reaction was against the dollar index. On the other hand, there is no fundamental reason for the Euro to strengthen right now since the ECB keeps on its soft monetary policy.

Trading recommendations
  • Support levels: 1.1265, 1.1230, 1.1168
  • Resistance levels: 1.1360, 1.1436, 1.1535, 1.1613, 1.1667, 1.1717

From a technical point of view, the EUR/USD on the hour time frame is still bearish. The price is trading in the corridor, and there is a narrowing of liquidity in the form of a pattern "triangle". The MACD indicator has become inactive. Under such market conditions, traders should consider sell positions from the priority change level of 1.1360. Buy trades can be considered on lower time frames, but only with short targets.

Alternative scenario: if the price breaks out through the 1.1360 resistance level and fixes above, the mid-term uptrend will likely resume.

EUR/USD
There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3217
  • Prev Close: 1.3269
  • % chg. over the last day: +0.39%

Friday's statistics showed a decline in industrial production in Great Britain. GDP figures for the quarter also decreased by 0.1%. The UK is now on lockdown, which will negatively impact the economy in future reports. A lot will depend on the Bank of England meeting this week. If the Bank of England postpones a rate hike until next year, it will negatively impact the national currency.

Trading recommendations
  • Support levels: 1.3232, 1.3188
  • Resistance levels: 1.3326, 1.3434, 1.3507, 1.3575, 1.3685

On the hourly time frame, the trend on GBP/USD is bearish. On Friday, the British pound showed some strength amid a decline in the dollar index and broke out the descending channel. The MACD indicator is in the positive zone. Under such market conditions, traders should consider sell positions from the priority change level. Buy trades should be considered from the support levels on lower time frames, but only with additional confirmation.

Alternative scenario: if the price breaks out through the 1.3326 resistance level and consolidates above, the bullish scenario will likely resume.

GBP/USD
There is no news feed for today.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 113.42
  • Prev Close: 113.37
  • % chg. over the last day: -0.04%

The fundamental outlook for the Japanese Yen looks gloomy amid large-scale economic stimulus by the central bank of Japan. Meetings of the central banks of the USA and Japan will take place this week. If the Fed accelerates the reduction of the QE program and the Bank of Japan leaves its monetary policy unchanged, which is highly likely, USD/JPY quotes may return to a bullish trend.

Trading recommendations
  • Support levels: 112.62, 112.30
  • Resistance levels: 113.94, 114.17, 115.15, 115.50

The global trend on the USD/JPY currency pair is bearish. The price is trading in a wide corridor. The pressure of buyers is increasing and the price is approaching priority change level. Under such market conditions, traders are better to look for sell positions from the priority change level, but with additional confirmation. Buy positions should be considered from the lower border of the corridor, but with additional confirmation in the form of a buyers' initiative or after the price breakout the priority change level.

Alternative scenario: if the price rises above 114.17, the uptrend will likely resume.

USD/JPY
News feed for 2021.12.13:
  • – Japan Tankan Manufacturing Index (q/q) at 01:50 (GMT+2);
  • – Japan Tankan Non-Manufacturing Index (q/q) at 01:50 (GMT+2).

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2705
  • Prev Close: 1.2722
  • % chg. over the last day: +0.13%

Fundamentally, both the dollar index and oil prices now tend to grow. Considering that the Canadian dollar is a commodity currency, the growth of oil prices will lead to the strengthening of the Canadian dollar, while the growth of the dollar index will lead to the reduction of the Canadian dollar. As a result, in the mid-term, traders should expect a wide flat for USD/CAD, without any single trend. However, analysts think that the Canadian dollar can rise to 1.25 against the US dollar due to the growth in oil prices.

Trading recommendations
  • Support levels: 1.2638, 1.2597, 1.2502, 1.2416
  • Resistance levels: 1.2726, 1.2776, 1.2828

From a technical point of view, the USD/CAD currency trend is bearish. The MACD indicator has become positive, and the price is trading in a narrow corridor. Under such market conditions, it is better to look for buy trades from the 1.2638 support level, but only after additional confirmation in the form of a buyers' initiative. It is better to consider sell deals from the priority change level.

Alternative scenario: if the price breaks out through the 1.2776 resistance level and fixes above, the downtrend will likely be broken.

USD/CAD
There is no news feed for today.

by Justforex, 2021.12.13

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
How to Interpret Inflation Data?
The Consumer Price Index, better known as CPI, is an important economic indicator regularly published by major economies to provide timely information on current inflation.
Read more
Setting the Clock Right: The Best Time To Trade Forex In India And Other Tips
In the forex market, many components come together for ensuring smooth operations and positive outcomes for a trader. Careful timing of trades is one of such components. In this article, we will explain how market timing is made, what time is best (and relatively worse) for trading, and how to choose the best time for forex trading in India.
Read more
The Matter of Trends: The Most Trending Forex Pairs
The forex market is lucrative for beginners and experienced traders alike because of high liquidity, various trading options, and earning potential that can be successfully realized with a properly chosen forex pair. Then the first question a trader should ask themselves is what pairs to trade and how to predict trends to make a profit off them. In this article, we will explore the trending potential of forex pairs, how to select the best pairs in forex, and uncover short-term and long-term trends.
Read more