FX.co ★ Brief trading recommendations for EUR/USD, GBP/USD and USD/CAD on 07/21/20

The EUR/USD currency pair continues to fluctuate within the resistance area 1.1440/1.1460, where market participants are trying to keep the upward direction, but the pressure in the established area is very high, which leads to an automatic reduction in buying positions. From the point of view of technical analysis, this phenomenon is called a "regular basis", where market participants, noticing strong price coordinates with many confirmations, fix their trading positions, which leads to a slowdown followed by a rebound in the opposite direction. In this case, the price interaction with the area of 1.1440/1.1460 has been going on for almost a week, and considering the previously confirmed historical touches of this area, it can be considered a strong resistance level.

Based on the above, we can put a trading recommendation, where in case of another price rebound from the area of 1.1440/1.1460 and consolidating below 1.1400, the way will open to us in the direction of 1.1370 - 1.1350 - 1.1300.

An alternative scenario will be considered if the area of 1.1440/1.1460 is broken and the quote manages to consolidate above 1.1470 with the prospect of moving to 1.1495.

The GBP/USD currency pair, showing increased upward interest, managed to reach the area of the highs of June 16 and July 9 at the area of 1.2660/1.2690, where, on a natural basis, there was a stop followed by a rebound in the price. Such a rapid rise in the price in a short period of time indicates a local overbought of the pound sterling, where, together with the resistance area of 1.2660/1.2690, market participants can receive a sell signal, which will lead to a corrective move in the direction of the values 1.2620 - 1.2585.

To minimize risks, it is advised to consider positions below 1.2650, in the direction of 1.2620 - 1.2585.

An alternative scenario will be considered if the price consolidates above 1.2700, which will indicate a breakdown of the resistance area 1.2660/1.2690 and send the quote towards the next level of 1.2770.

For the USD/CAD currency pair, it can be noted that the quote still managed to break through its lower border after a 36-hour stagnation at the end of last week, which led to a sharp acceleration and a decline in the price to the support level of 1.3490/1.3515. Based on the regularities of the rebound, it can be assumed that in the event of a slowdown within the support area and the price consolidation above 1.3520, the price may reverse in the direction of 1.3540 - 1.3560.

An alternative scenario will be considered in case of a breakdown of the support area 1.3500/1.3515 and price consolidation below 1.3490, which may subsequently lead to a further downward movement in the direction of 1.3450 - 1.3400.