The Analytical Overview of the Main Currency Pairs on 2020.01.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11953
  • Open: 1.11510
  • % chg. over the last day: -0.37
  • Day's range: 1.11441 - 1.11683
  • 52 wk range: 1.0879 - 1.1572

The EUR/USD currency pair is dominated by bearish sentiment. During yesterday's trading, the drop in quotes exceeded 50 points. The trading instrument is currently consolidating. The local support and resistance levels are 1.11350 and 1.11650, respectively. We do not exclude a further decline in the EUR/USD currency pair. In December, the ISM U.S. Purchasing Managers Index accelerated from 53.9 to 55.0. Financial market participants continue to monitor developments in the Middle East. We recommend opening positions from key levels.

At 15:15 (GMT+2:00) the US will publish a report on the number of employees in the non-agricultural sector by ADP.

EUR/USD

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

The MACD histogram is in the negative zone and continues to decline, which sends a strong signal to sell EUR/USD.

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

Trading recommendations
  • Support levels: 1.11350, 1.11100
  • Resistance levels: 1.11650, 1.12000, 1.12350

If the price consolidates below 1.11350, expect a further drop to 1.11000-1.10800.

Alternatively the quotes could grow to a round level of 1.12000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31683
  • Open: 1.31194
  • % chg. over the last day: -0.42
  • Day's range: 1.31044 - 1.31471
  • 52 wk range: 1.1959 - 1.3516

An ambiguous technical pattern has developed on the GBP/USD currency pair. The trading instrument is in lateral movement. There is no defined trend. The pound is testing local support and resistance levels 1.31000 and 1.31600, respectively. Expect up-to-date information on Brexit. Open positions from key levels.

Today, the news background on the UK economy is quite calm.

GBP/USD

Indicators do not give accurate signals: the price has crossed 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 GBP/USD.

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

Trading recommendations
  • Support levels: 1.31000, 1.30550, 1.30000
  • Resistance levels: 1.31600, 1.32250

If the price consolidates below the round level of 1.31000, expect the quotes to fall toward 1.30600-1.30400.

Alternatively, the quotes could grow toward 1.32000-1.32300.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.29658
  • Open: 1.29851
  • % chg. over the last day: +0.25
  • Day's range: 1.29802 - 1.30072
  • 52 wk range: 1.2949 - 1.3566

The USD/CAD currency pair continues to consolidate after a long fall. There is no defined trend. The local support and resistance levels are 1.29600 and 1.30000, respectively. In the near future, technical correction of the trading instrument is not ruled out. In December, the Canadian business activity index from Ivey slowed from 60.0 to 51.9. We recommend that you pay attention to the dynamics of prices for oil. Open positions from key levels.

The news background on the Canadian economy is calm.

USD/CAD

Indicators do not give accurate signals: the price has crossed 50 MA and 100 MA.

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 1.29600, 1.29200
  • Resistance levels: 1.30000, 1.30250, 1.30500

If the price consolidates above the round level of 1.30000, expect a correction toward 1.30300

An alternative could be a decrease in the USD/CAD currency pair to 1.29400-1.29200.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.327
  • Open: 108.447
  • % chg. over the last day: +0.07
  • Day's range: 107.651 - 108.513
  • 52 wk range: 104.45 - 113.53

Since the beginning of this week, trading on the USD/JPY currency pair has been very active. The focus is on geopolitical tensions in the Middle East. Demand for “safe haven” currencies remains at a fairly high level. At the moment, the following local support and resistance levels can be distinguished: 108.150 and 108.600, respectively. We recommend that you pay attention to the dynamics of yield on US government bonds. Open positions from key levels.

The news background on the Japanese economy is calm.

USD/JPY

Indicators do not give accurate signals: the price has crossed 50 MA and 100 MA.

The MACD histogram has approached the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 108.150, 107.800
  • Resistance levels: 108.600, 108.850, 109.000

If the price consolidates below 108.150, expect the quotes to fall toward 107.800-107.600.

Alternatively, the quotes could grow toward 109.000.

by JustForex, 2020.01.08

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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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