The Analytical Overview of the Main Currency Pairs on 2020.01.14

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11116
  • Open: 1.11333
  • % chg. over the last day: +0.16
  • Day's range: 1.11315 – 1.11445
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair has been growing after a rather continuous fall since the end of December. Currently, quotes are consolidating. The local support and resistance levels are 1.11200 and 1.11450, respectively. The current technical pattern signals a further correction of the trading instrument. Financial market participants expect the signing of an interim trade agreement between Washington and Beijing. We recommend opening positions from key levels.

The Economic News Feed for 14.01.2020:

  • At 15:30 (GMT+2:00), investors will assess the US inflation report.
EUR/USD

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

The MACD histogram is in the positive zone and continues to rise, indicating the bullish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which also gives a signal to buy EUR/USD.

Trading recommendations
  • Support levels: 1.11200, 1.10900
  • Resistance levels: 1.11450, 1.11650, 1.12000

If the price fixes above 1.11450, further growth of EUR/USD quotes is expected. The movement is tending to 1.11700-1.12000.

An alternative could be a decrease in the EUR/USD currency pair to 1.11000-1.10800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30345
  • Open: 1.29872
  • % chg. over the last day: -0.44
  • Day's range: 1.29694 – 1.30023
  • 52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair continues to show negative dynamics. The trading instrument has overcome and fixed below the level of $1.30. The British pound is still under pressure after the release of weak statistics on GDP and manufacturing production in the UK. Currently, GBP/USD quotes are consolidating in the range of 1.29600-1.30150. The pound has a potential for further decline. Today we recommend paying attention to the news feed from the US. Positions should be opened from key levels.

The publication of important economic releases from the UK is not planned.

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: 1.29600, 1.29200
  • Resistance levels: 1.30150, 1.30550, 1.31000

If the price fixes below 1.29600, a further drop in GBP/USD quotes is expected. The movement is tending to 1.29300-1.29000.

An alternative could be the growth of the GBP/USD currency pair to 1.30500-1.30700.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30500
  • Open: 1.30543
  • % chg. over the last day: +0.02
  • Day's range: 1.30498 – 1.30646
  • 52 wk range: 1.2949 – 1.3566

The loonie is being traded in flat. The one-direction trend is not observed. USD/CAD quotes are testing local support and resistance levels: 1.30400 and 1.30750, respectively. We do not exclude further growth of the USD/CAD currency pair. The Canadian dollar is under pressure due to the negative dynamics of oil prices. Today we recommend paying attention to the US inflation report. 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 crossed 50 MA and 100 MA.

The MACD histogram is near the 0 mark.

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: 1.30400, 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: 109.530
  • Open: 109.920
  • % chg. over the last day: +0.42
  • Day's range: 109.917 – 110.213
  • 52 wk range: 104.45 – 113.53

USD/JPY quotes have been growing again. The trading instrument has set new local highs. The USD/JPY currency pair found resistance at 110.200. The 109.700 mark is already a "mirror" support. Demand for safe-haven currencies remains at a rather low level due to the reduction of fears of further escalation of the military conflict between the US and Iran. USD/JPY quotes have the potential for further growth. We recommend paying attention to economic reports from the US. Positions should be opened from key levels.

The news feed on Japan’s economy is quite calm.

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 neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 109.700, 109.350, 109.000
  • Resistance levels: 110.200, 110.500

If the price fixes above 110.200, further growth of the USD/JPY quotes is expected. The movement is tending to 110.500-110.700.

An alternative could be the correction of the USD/JPY currency pair to 109.400-109.200.

by JustForex, 2020.01.14

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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