The Analytical Overview of the Main Currency Pairs on 2020.01.13

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11020
  • Open: 1.11116
  • % chg. over the last day: +0.14
  • Day's range: 1.11020 – 1.11111
  • 52 wk range: 1.0879 – 1.1572

On Friday, January 10, the dollar index moved away from local highs. The US has published rather weak labor market statistics for December. 145K new jobs were created in the nonfarm sector of the country, which is below market expectations at 164K. Average hourly earnings growth slowed down from 3.1% (yoy) to 2.9% (yoy). The unemployment rate remained unchanged at 3.5%. At the moment, EUR/USD quotes are consolidating in the range of 1.11100-1.11350. The single currency has the potential for further recovery. Investors expect the conclusion of the phase-one trade deal between Washington and Beijing, which is scheduled for January 15. We recommend opening positions from key levels.

The Economic News Feed for 13.01.2020:

  • Today, the publication of important economic releases is not planned.
EUR/USD

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

The MACD histogram has moved into the positive zone, indicating the bullish sentiment.

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: 1.11100, 1.10900
  • Resistance levels: 1.11350, 1.11650, 1.12000

If the price fixes above 1.11350, further growth of EUR/USD quotes is expected. The movement is tending to 1.11600-1.11800.

An alternative could be a decrease in the EUR/USD currency pair to 1.10900-1.10700.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30660
  • Open: 1.30345
  • % chg. over the last day: -0.13
  • Day's range: 1.30154 – 1.30450
  • 52 wk range: 1.1959 – 1.3516

The bearish sentiment is prevailing on the GBP/USD currency pair. Currently, the British pound is testing the local support level of 1.30150. The 1.30550 mark is already a "mirror" resistance. The technical pattern signals a further fall in GBP/USD quotes. Today, financial market participants will assess important statistics on the UK economy. Positions should be opened from key levels.

News Feed on the UK Economy 13.01.2020:

  • - Data on the country's GDP at 11:30 (GMT+2:00);
  • - Manufacturing production at 11:30 (GMT+2:00).
GBP/USD

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

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

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

Trading recommendations
  • Support levels: 1.30150, 1.29700
  • Resistance levels: 1.30550, 1.31000, 1.31600

If the price fixes below 1.30150, a further drop in GBP/USD quotes is expected. The movement is tending to 1.29800-1.29600.

An alternative could be the growth of the GBP/USD currency pair to 1.30900-1.31200.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30569
  • Open: 1.30500
  • % chg. over the last day: -0.03
  • Day's range: 1.30459 – 1.30675
  • 52 wk range: 1.2949 – 1.3566

An ambiguous technical pattern has been developed on the USD/CAD currency pair. The loonie is in a sideways trend. Unidirectional trends are not observed. At the moment, the following local support and resistance levels can be distinguished: 1.30400 and 1.30750. Investors expect additional drivers. We recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

USD/CAD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.30400, 1.30200, 1.30000
  • Resistance levels: 1.30750, 1.31000

If the price fixes above 1.30750, USD/CAD quotes are expected to rise. The movement is tending to 1.31000-1.31200.

An alternative could be a decrease in the USD/CAD currency pair to 1.30200-1.30000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.510
  • Open: 109.530
  • % chg. over the last day: +0.01
  • Day's range: 109.503 – 109.648
  • 52 wk range: 104.45 – 113.53

The USD/JPY currency pair has become stable after a significant rally last week. The trading instrument is currently consolidating. The local support and resistance levels are 109.350 and 109.700, respectively. In the near future, the technical correction of USD/JPY quotes is not excluded. We recommend following current information regarding resolving the conflict in the Middle East, as well as concluding a trade deal between the US and China. Positions should be opened from key levels.

Today, Japan's financial markets are closed due to the holiday.

USD/JPY

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

The MACD histogram is in the positive zone, which also gives a signal to buy USD/JPY.

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: 109.350, 109.000, 108.850
  • Resistance levels: 109.700, 110.000

If the price fixes above 109.700, further growth of the USD/JPY quotes is expected. The movement is tending to 110.000-110.200.

An alternative could be the correction of the USD/JPY currency pair to 109.000-108.800.

by JustForex, 2020.01.13

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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