Forex majors: short-term and long-term

Forex majors: short-term and long-term

2021-05-20 • Updated

EUR/USD: a downswing looming

At the beginning of the virus hit, EUR/USD was in the zone of 1.10. By the end of 2020, it rose to 1.2350. Since then, it’s been going mostly downwards as the USD is gaining momentum with the recovering US economy. Currently, it trades around 1.20, and if the US economic optimism stays for another month or two, we are likely to see the pair challenge the tactical supports of 1.17 and 1.16.

EURUSD.png

GBP/USD: post-Brexit

From the depths of 1.20 at the beginning of the pandemic, this pair has been going upwards almost in a straight line to reach 1.42 in February. Since then, it dropped some of the gains and has been floating below 1.40. Pound’s offensive may have stopped due to the accumulating effect of Brexit as the UK is seeing a lower financial dynamic than before. Locally, 1.38 and 1.37 are the supports bears may be aiming at. If these get broken in the coming weeks, it may be a start of a whole new multimonth downswing back to 1.20.

GBPUSD.png

EUR/GBP: bouncing upwards or five-year lows

While this pair dropped to 0.83 in the first part of 2020, it has been trading around 0.90 in the second part. However, it ceded most of the gains during previous months going down to 0.85 in April. That level turned out to be a tactical low that sent the currency pair into the upside. EUR/USD bounced off that level a month ago to reach 0.87 – this is the current resistance level. Currently, the pair is on the way downwards after bouncing off it a few days ago. If bears keep pulling, it may reach 0.86 and aim at 0.85 once again. In the larger perspective, the behavior of EUR/GBP in the coming weeks will indicate if it is going to re-take the gains made through 2020 or go further downwards to the five-year lows of 0.83.

EURGBP.png

                                                                                                       LOG IN

Similar

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera