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07.04.202113:20 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on April 7, 2021

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EUR/USD

Exchange Rates 07.04.2021 analysis

Bullish traders continued to rally and reached the next resistance previously indicated at 1.1886 (weekly Fibo Kijun). The breakdown of this level will raise the question of testing the final borders of the daily dead cross (1.1909 Kijun - 1.1957 Fibo Kijun), and then the most significant and fortified border 1.1976-72 (monthly Tenkan + weekly cross) will enter the scenario. Today, the nearest support zone are set at 1.1821 - 1.1793 - 1.1762.

Exchange Rates 07.04.2021 analysis

The advantage in the smaller time frames belongs to the bulls' side. The intraday upward targets are 1.1904 - 1.1932 - 1.1987 (resistances of the classic pivot levels). In turn, the key support levels are located at 1.1849 (central pivot level) and 1.1784 (weekly long-term trend). The breakdown of these support levels may affect the current balance of power.

GBP/USD

Exchange Rates 07.04.2021 analysis

The strength of the reached resistance led to a change in the leadership on the market. How long bearish traders will dominate depends on the success of overcoming the current supports located in the area of 1.38 (trend line + daily levels). Once this is broken, it will open the way to the lower border of the daily cloud (1.3714), reinforced by the weekly Fibo Kijun (1.3710). A slowdown will occur followed by new bullish activity. If so, the pair will return to a wide zone 1.3904 - 1.3952 - 1.4002, which consists of resistance levels of different time frames.

Exchange Rates 07.04.2021 analysis

Currently, the bears are in favor in the smaller time frames. However, the encountered support at 1.3775 (S1) was the reason why the broken key H1 levels, which combined their strength in the area of 1.3830-46 (central pivot level + weekly long-term trend), are tested again. If the price breaks through the range of 1.3830-46 and consolidates above it, this will allow us to reconsider the bullish opportunities and prospects. The upward pivot points are set at 1.3892 - 1.3963 - 1.4009. A decline below the key levels (1.3830-46) will help to maintain a bearish mood. In this case, we can consider the support for classic pivot levels at 1.3775 - 1.3729 - 1.3658.

***

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.

Evangelos Poulakis
Analytical expert of InstaForex
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