FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on April 5, 2021

EUR/USD

The slowdown continues in the correction zone. Now, the level of 1.1762 provides attraction (100% working out of the daily target). The daily short-term trend (1.1778) declined to the attraction zone today, weakening its duty as a resistance. In case that growth continues in the near future, we can note the next significant resistance levels in the area of 1.1821 and 1.1886 (weekly Fibo Kijun).

On the contrary, if bearish activity returns to the market, the main task will be to break through the monthly support level of 1.1695. If so, the downward movement will resume to the support level (1.1591) of the weekly cloud.

The upward correction in the higher time frames is now trying to persist due to the support provided by the key levels of 1.1765-50 (central pivot level + weekly long-term trend) in the smaller time frames. Holding onto the support levels will allow the bulls to make new upward prospects. Today, the upward pivot points are set at 1.1782 - 1.1803 - 1.1820 (classic pivot levels). If the bulls broke through the weekly long-term trend (1.1750), the balance of power on H1 will change towards the bearish side. In such a case, the bears will have to update the low (1.1704) and break through the monthly support (1.1695).

GBP/USD

There is a continuing struggle in the resistance area. Bulls' position can significantly improve if they manage to sharply consolidate above the trend line of the weekly correction and the daily medium-term trend (1.3842). After that, bullish traders need to break through the Ichimoku daily dead cross and enter the bullish zone relative to the daily cloud. At the same time, they will have to implement these plans by breaking through weekly and monthly resistance levels (1.3904-1.3952-1.4002). The change of sentiment, in turn, will make the support levels of 1.3802 (daily Fibo Kijun) - 1.3761 (daily Tenkan) - 1.3714-10 (daily Senkou Span B + weekly Fibo Kijun) important again.

The favor in the smaller time frames is completely on the side of bullish traders. They have to update their previous highs and continue to grow. Here, we can note the resistances of the pivot levels (1.3869 R2 - 1.3888 R3). Meanwhile, the key levels in the H1 chart serve as support at 1.3829 (central pivot level) and 1.3790 (weekly long-term trend) and defend bullish interests.

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Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart are used in the technical analysis of the trading instruments.