FX.co ★ 30.07.2021: USD likely to end week near one-month low - Outlook for EUR/USD, GBP/USD

Today, following a 4-day decline, the US dollar has started to trade mixed. Nevertheless, it is still on track to end the week near its monthly low. The greenback continues to lose in value against the euro and the British currency. However, this will hardly last long. From a technical point of view, the euro/dollar and the pound/dollar pairs have already entered overbought territory.

Yesterday, the euro/dollar pair managed to maintain its bullish trend. As a result, the quote rushed to the next resistance level at around 1900.

According to the current trading chart, it can be seen that the 1.1900 level still acts as resistance, despite a local breakout. In this situation, traders still hope for a possible rebound in case the price fixes below 1.1870. If the price breaks through the resistance level and consolidates above 1.1915, the euro/dollar pair will most likely extend gains and even approach the area of 1.1950/1.1975.

The dynamics of the pound/dollar pair are rather similar. The quotes continue to trade upwards. In the meantime, the price has headed towards the next resistance level of 1.4000. The trading chart shows that ​​the psychological level of 1.4000 acts as resistance in the market, which leads to a slowdown and a rebound in quotes. Accordingly, the volume of short positions may increase. This means that the pound/dollar pair is highly likely to enter a technical correction, sliding up to 1.3900 or even lower.