Market Analysis: Major Currency Pairs Correcting in a Weakly Volatile Market

FXOpen

The beginning of the current five-day period turned out to be rather sluggish for the major currency pairs. The US employment report published last week was ambiguously received by market participants. The dollar first fell and then sharply strengthened. However, yesterday, there was no continuation of the uptrend for the greenback; most likely, the passivity of investors was associated with the weekend in the US and Canada. A lot of important foundation is expected in the coming trading session; one should be prepared for a possible surge in volatility.

GBP/USD

The British currency failed to strengthen above the alligator lines on the daily timeframe last week, thus failing another reversal attempt. The rebound from 1.2750 led to losses of more than 150 pp. Last week, the pair traded below 1.2600. Yesterday, the buyers managed to correct the price - 1.2640, but since no strong reversal combinations have been formed, GBP/USD will most likely continue to decline towards the lower fractals at 1.2570-1.2540. If this range turns into resistance, there may be a new downward momentum towards 1.2400-1.2200. Cancellation of the downward scenario may be considered only after the price stays above 1.2750.

Today at 11:30 GMT+3, we are waiting for data on the composite index of business activity (PMI) of the UK for August; also, at this time, the index of business activity in the services sector will be released.

EUR/USD

We can also see the breakdown of the ascending combination in the EUR/USD pair. Buyers of the single European currency failed to stay above 1.0900, and at the moment, the price is trading below 1.0800. If there are no fundamental prerequisites for a reversal in the coming trading sessions, the pair's decline may intensify. The nearest supports are located at 1.0600-1.0500, and their breakdown may bring the price back to parity.

Today, it is worth paying attention to the publication of data on the index of business activity in the eurozone services sector for August. ECB President Christine Lagarde and ECB representative Isabel Schnabel are also scheduled to speak.

USD/CAD

The USD/CAD currency pair is again trading above 1.3600. This is the third attempt to overcome the important resistance, which has been beyond the control of greenback buyers since April of this year. In this case, the range of 1.3640-1.3620 is vital since the variants of breakdown with upward movement and rebound with the subsequent development of a downward correction are equivalent.

Tomorrow is important for the pricing of the pair, a meeting of the Bank of Canada is scheduled at 17:00 GMT+3.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High

Latest articles

Shares

TSLA Shares Revive After Shareholder Meeting

Last week, Tesla held a shareholder meeting where the main events included:
→ Shareholders approving Elon Musk’s $56 billion compensation package in TSLA stock options;
→ Relocating the company’s legal headquarters to Texas;
→ Elon Musk’s statements on robotics, asserting

What Is a Petrodollar and How Does It Affect the Global Economy?
Trader’s Tools

What Is a Petrodollar and How Does It Affect the Global Economy?

The concept of petrodollars is an insightful topic to study. The petrodollar isn’t a specific currency but a financial system that reflects economic and political forces that have shaped international relations for decades. This concept is critical to understanding

Indices

Nasdaq 100 Index Reaches 20,000 Points for the First Time

On 30 May, we noted some uncertainty in the price behaviour of the Nasdaq 100 (US Tech 100 mini on FXOpen) near the resistance level of 18,840, as shown by arrow #1.

Following this, the price declined and tested

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.