22.03.202112:57 Forex Analysis & Reviews: Technical analysis recommendations for EUR/USD and GBP/USD on March 22

EUR/USD

The previous week has maintained its uncertainty character, with the most important support and resistance levels in this area continuing to be located at the previous borders. The pair remained within the range of 1.1975-91 (weekly Kijun + daily Fibo Kijun) - 1.1886 (weekly Fibo Kijun). If it moves further below, it will be possible to test the downward targets of 1.1821 - 1.1762 (daily target for cloud breakout + monthly short-term trend). In turn, the upward movement will lead the Euro currency to the daily and weekly cross levels (1.2039-64), followed by the daily cloud.

The key levels in the smaller time frames continue to serve as resistances, currently located in the area of 1.1905-20 (central pivot level + weekly long-term trend). However, the favor remains on the bearish side. Today, the downward targets are set at 1.1873-1.1842-1.1810 (classic pivot levels). We can note that the correction period, as well as the proximity and influence of the attraction zone of the key H1 levels, weaken the bears. So, if the price consolidates above the range of 1.1905-20, this will allow us to consider strengthening the positions and moods of the bulls.

GBP/USD

The weekly candlestick retained its uncertainty. But based on the current result, some advantage still persists on the bears' side, as they successfully close the week below all the closest attraction and resistance levels. The next downside target is now the daily cloud, strengthened by the weekly Fibo Kijun (1.3672). Meanwhile, the resistance and attraction levels retain their position and still form their influence in a fairly wide area 1.3904-1.3954-1.4008-1.4062 (daily cross + weekly levels).

The key advantage in the smaller time frames still belongs to bearish traders. In fact, the pound sterling is currently in the upward correction zone after testing the first support (1.3815) of the classic pivot levels. Once this support level is broken, the path will open towards other support levels at 1.3759 (S2) and 1.3687 (S3).

Alternatively, the development of a correction and consolidation above the key levels of 1.3901- 1.3887 (central pivot level + weekly long-term trend) will change the current situation. If this happens, the resistance levels of the classic pivot levels (1.3943-1.4015-1.4071) will become relevant again.

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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.