The Analytical Overview of the Main Currency Pairs on 2019.11.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11278
  • Open: 1.10741
  • % chg. over the last day: -0.48
  • Day's range: 1.10667 - 1.10799
  • 52 wk range: 1.0884 - 1.1623

Yesterday, the US dollar strengthened significantly against its main competitors. The fall of EUR/USD quotes exceeded 50 points. The trading tool has reached key extremes. USD demand rose amid growing prospects for a settlement of the trade conflict between Washington and Beijing. According to media reports, the parties are considering the possibility of mutual concessions in order to sign the first stage of the agreement in November. Additional support for the US currency was provided by positive data on business activity in the US non-manufacturing sector from ISM. Currently, EUR/USD quotes are consolidating in the range of 1.10650-1.10850. The EUR/USD currency pair can decline further. We recommend opening positions from key levels.

The Economic News Feed for 06.11.2019:

  • - Composite PMI by Markit (EU) – 11:00 (GMT+2:00);
  • - Retail Sales Volume (EU) – 12:00 (GMT+2:00);

Pay attention to the speeches by FOMC representatives.

EUR/USD

Indicators signal the strength of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also indicates a bearish sentiment.

Trading recommendations
  • Support levels: 1.10650, 1.10250, 1.10000
  • Resistance levels: 1.10850, 1.11000, 1.11200

If the price consolidates below 1.10650, expect a further drop in the EUR/USD quotes toward 1.10300-1.10100.

Alternatively, the quotes could grow toward 1.11000-1.11200.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28834
  • Open: 1.28835
  • % chg. over the last day: -0.03
  • Day's range: 1.28687 - 1.28851
  • 52 wk range: 1.1959 - 1.3385

An ambiguous technical pattern has developed on the GBP/USD currency pair. Sterling is consolidating. There is no defined trend. At the moment, the local support and resistance levels are 1.28650 and 1.29000, respectively. Investors expect additional drivers. Demand for the US dollar remains at a fairly high level. GBP/USD quotes can decline yet. We recommend opening positions from key levels.

The Economic News Feed for 06.11.2019 is quite calm.

GBP/USD

The price fixed below 50 MA and 100 MA, which signals the strength of sellers.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

The Stochastic Oscillator is in the neutral zone, the %K line began to cross the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.28650, 1.28400, 1.28100
  • Resistance levels: 1.29000, 1.29250, 1.29700

If the price consolidates below 1.28650, expect a further decline in GBP/USD quotes.

Alternatively, the quotes could grow toward 1.29200-1.29400.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31496
  • Open: 1.31550
  • % chg. over the last day: +0.06
  • Day's range: 1.31411 - 1.31704
  • 52 wk range: 1.2727 - 1.3664

The USD/CAD currency pair continues to trade flat. Unidirectional trends are not observed. Financial market participants took a wait and see attitude before the release of important statistics from Canada. Looney is currently testing local support and resistance levels: 1.31400 and 1.31750, respectively. USD / CAD quotes have upside potential. We recommend paying attention to the dynamics of oil quotes. Positions must be opened from key levels.

At 17:00 (GMT+2:00) Ivey will publish a Canadian PMI.

USD/CAD

Indicators do not give accurate signals, 50 MA has crossed 100 MA.

The MACD histogram has moved into the positive zone, which indicates the growth of USD/CAD.

The Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.31400, 1.31150, 1.31000
  • Resistance levels: 1.31750, 1.32000

If the price consolidates above 1.31750, expect the quotes to rise toward 1.32000-1.32200.

Alternatively, the quotes could decrease toward 1.31150-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.586
  • Open: 109.170
  • % chg. over the last day: +0.52
  • Day's range: 108.909 – 109.118
  • 52 wk range: 104.97 – 114.56

A pronounced upward trend is observed on the USD/JPY currency air. The trading tool has reached the key extremes. The quotes are consolidating at 108.850-109.100. The demand for safe have currencies has weakened. JPY can decline further against the USD. Keep an eye on the US government bonds and open positions from the key levels.

During the Asian trading session, Japan has published a weak report on business activity in the service industry.

USD/JPY

The price fixed above 50 MA and 100 MA, which signals the power of buyers.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish sentiment.

Trading recommendations
  • Support levels: 108.850, 108.650, 108.500
  • Resistance levels: 109.100, 109.250, 109.500

If the price consolidates above 109.100, expect further growth toward 109.300-109.500.

Alternatively the quotes could decrease toward 108.650-108.500.

by JustForex, 2019.11.06

We recommend you to get acquainted with the daily overview of the news feed.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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