12.01.2021: EUR/USD and GBP/USD outlook.
After yesterday’s little trading activity, the market has been flat. Fluctuations in the price of EUR/USD and GBP/USD are purely symbolic. All this is due to the fact that there has been complete absence of any new economic and political information. Congress will meet tomorrow to consider impeachment of Donald Trump. Until then, this issue will remain insignificant. Apart from that, it is unlikely that the job openings data published today will somehow influence the situation. Firstly, in terms of the market, the report will be published quite late. Secondly, the data may turn out to be uncertain. The point is that the number of job openings is estimated to decline. In this case, it is very important to understand the figures right. On the one hand, we can say that a drop in job openings reflects a decrease in the number of unemployed, which is proved by a stable unemployment rate. From this perspective, the plunge in the number of job openings is a positive factor. On the other hand, the total number of jobs in the United States fell for the first time since April last year. In this respect, the decline in the number of job openings is only a consequence. As a result, the situation is rather delicate. It follows from the above that investors will be uncertain about their preferences. Let’s take a look at today’s charts. During its corrective move from the peak of the mid-term upward trend, 1.2349 (the high of January 6), the EUR/USD pair reached the Pivot point of 1.2130. The support level is also located there. We discussed the Pivot point of 1.2130 and a possible rebound from it in the previous release.
According to the trading chart, EUR/USD is moving sideways in the 1.2130 - 1.2175 range. The indicated boundaries are likely to hold back speculators for a while. However, the situation is extraordinary: the price is at the Pivot point of 1.2130. At the same time, there is the corrective move. Therefore, one should wait for a breakout at one or another border of the 1,2130 - 1,2175 range. The GBP/USD pair, moving from the peak of the mid-term upward trend, reached the pivot area of 1.3450. The price area also serves as support. As a result, an upward pullback became possible. According to the trading chart, the level of 1.3450 still provides support to market participants. Consequently, the price reversed to 1.3600. The corrective move remains a priority in the market. The price may well turn back to 1.3450. However, if the price consolidates above 1.3635 on the four-hour chart, the mid-term upward trend may resume or the pair may start moving in a wide sideways channel.
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