FX.co ★ Technical analysis recommendations for EUR/USD and GBP/USD on April 12, 2021

EUR/USD

Last week, the euro closed above the daily cross and weekly level (1.1886). If there is no sharp intervention in the situation of fundamental factors, then we can expect further growth. Here, the nearest and very important pivot point for bulls will be the accumulation of resistance in the area of 1.1972-76 (weekly cross + monthly short-term trend). Currently, the final level of the daily dead cross (1.1881) and the weekly Fibo Kijun (1.1886) exert attraction and restrain the movement from developing. The return of bearish sentiment to the market will make the support levels located at 1.1847 (daily Kijun) - 1.1816 (daily Tenkan) - 1.1762 (100% daily target level) - 1.1695 (monthly Fibo Kijun) relevant again.

The bearish traders, executing the current downward correction, managed to secure the support of several analyzed technical instruments. In order to completely change the sentiments and prospects, it is necessary to break through the support of the weekly long-term trend (1.1865) and reverse the moving average. Further, the intraday bearish targets will be S2 (1.1842) and S3 (1.1816).

Once the current downward correction is done, a rebound may form from the weekly long-term trend (1.1865) and the bulls may return to the central pivot level (1.1896). After that, it will be possible to consider the possibility of the continuation of the upward movement. The nearest pivot points will be the resistances of the classic pivot levels set at 1.1924 - 1.1950 - 1.1978.

GBP/USD

During the previous week, bearish sentiment dominated. The bears successfully managed to close both the daily (below the Ichimoku cloud) and weekly (below the Fibo Kijun) time frames. If the downward movement continues, we can consider the closest pivot points at 1.3651-22 (target for the breakdown of the H4 cloud) and 1.3547 (weekly medium-term trend). At the same time, the encountered support of the weekly level (1.3710) may now act as a deceleration or even formation of a rebound. The nearest resistance in the development of such a scenario can be noted at the borders of the daily levels 1.3771-94 - 1.3837 - 1.3876.

At the moment, bullish traders are trying for an upward correction in the smaller time frames. Today, they have already managed to move above the central pivot level (1.3707) and are now testing the resistance of the classic pivot levels R1 (1.3746). It will be important to break through the resistance of the weekly long-term trend (1.3783). A consolidation above the moving average and its reversal will change the balance of forces, which may lead to the opening of new prospects.

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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.