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15.03.2021 01:29 PM
Technical analysis recommendations for EUR/USD and GBP/USD on March 15

EUR/USD

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Bullish traders failed to close the previous week as positively as possible, since they were not able to break through the reached resistance area of 1.1975-91 (daily levels + weekly medium-term trend). Moreover, Friday prevented the bears from forming a reliable rebound, so Friday's long lower shadow is now likely to interfere with the bearish activity. As a result, there is currently some uncertainty in the market which has maintained the prospects and guidelines of the opposing parties.

For the bears, we consider the downward pivot points set at 1.1886 - 1.1821 - 1.1762 (weekly Fibo Kijun + daily target for the breakout of the cloud + monthly Tenkan). As for the bulls, their main task is to break through the area of 1.1975-91 and move towards the next levels of 1.2039-64 (daily and weekly cross levels) and the daily cloud.

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The euro/dollar pair has been in the correction zone for quite some time on the H1 time frame, using the support and attraction of the key levels – the central pivot level (1.1951) and the weekly long-term trend (1.1915). The basis for the current correction was reaching the resistances (1.1975-91) in the bigger time frames. If the extremes of the decline (1.1967 and 1.1990) are updated and the price consolidates above them, growth will resume. In this direction, the intraday pivot points can be noted at 1.2030 (R2) and 1.2070 (R3). In the event of a breakdown of the key supports of H1 (1.1951-15), it is necessary for the bears to update the low of 1.1836.

GBP/USD

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During the previous week, the pound was busy forming a rebound from the reached support of the weekly short-term trend and breaking the daily Ichimoku dead cross. However, the bulls failed to get a desirable result. The daily cross (final level is 1.4026) is still on the way to further strengthen the bullish mood, while the weekly candle does not have a strong bullish mood (long upper shadow). The tasks remain the same and once these are worked out, it will open the way towards other upward pivot points, such as 1.4118-1.4181-1.4240.

As for the bears, this week's support and attraction zone is narrowed to the range of 1.3904-1.3880 (weekly and daily levels of Ichimoku). Their plan is to update the nearest extreme low (1.3777).

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The bulls in the smaller time frames are trying to preserve their key levels from losing their advantage. These key levels are now combining their strengths and are in the range of 1.3903-28 (central pivot level + weekly long-term trend). If the bulls maintain their positions within these supports, it will allow them to further rise. In this case, the resistance of the classic pivot levels 1.3993 - 1.4070 - 1.4135 will act as upward intraday pivot points. In turn, if the price significantly consolidates below the levels of 1.3903-28, then the downward movement will be considered. Here, the downward pivot points of the classic pivot levels are set at 1.3851 - 1.3786 - 1.3709.

***

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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