The Analytical Overview of the Main Currency Pairs on 2020.01.24

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10928
  • Open: 1.10534
  • % chg. over the last day: -0.34
  • Day's range: 1.10314 – 1.10616
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair has moved down after the ECB meeting. During yesterday's and today's trades the drop in quotations exceeded 60 points. As expected, the regulator kept the main parameters of monetary policy at the same level. The central bank is concerned about weak inflation prospects, as well as growing risks in international trade. The ECB plans to further stimulate the economy for a long period of time. At the moment, the trading instrument is consolidating in the range of 1.10300-1.10600. EUR/USD quotes have potential for further decline. Open positions from key levels.

Mixed data on business activity in Germany and the euro zone was published today.

EUR/USD

The indicators signal the sellers' strength: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, which indicates a bearish mood.

The Stochastic Oscillator is located near the oversold area, the %K line is below the %D line, which gives a weak sell signal for EUR/USD.

Trading recommendations
  • Support levels: 1.10300, 1.10000
  • Resistance levels: 1.10600, 1.10800, 1.11000

If the price fixes below 1.10300, expect further decline of EUR/USD quotes to 1.1000-1.09800.

Alternatively, the quotes could recover toward 1.10800-1.11000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31387
  • Open: 1.31236
  • % chg. over the last day: -0.18
  • Day's range: 1.30800 - 1.31729
  • 52 wk range: 1.1959 - 1.3516

The GBP/USD currency pair has stabilized. Sterling is currently trading in a flat. There is no defined trend. Financial market participants are waiting for additional drivers. The key range is 1.30800-1.31200. Elizabeth II signed a bill on the country's exit from the European Union (EU), which was prepared by Prime Minister Boris Johnson. Now the document has received the status of a law and gained legal force. Open positions from key levels.

The Economic News Feed for 24.01.2020 is calm.

GBP/USD

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

MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.30800, 1.30350, 1.30000
  • Resistance levels: 1.31200, 1.31500, 1.31700

If the price fixes below 1.30800, GBP/USD quotes are expected to fall toward 1.30400-1.30200.

Alternatively, the quotes could grow toward 1.31500-1.31800.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31347
  • Open: 1.31268
  • % chg. over the last day: -0.06
  • Day's range: 1.31211 – 1.31424
  • 52 wk range: 1.2949 – 1.3566

USD/CAD quotes have stabilized after a sharp rise at the beginning of this week. At the moment the loonie is consolidating. The local support and resistance levels are: 1.31200 and 1.31500, respectively. The Canadian dollar continues to be under pressure from the negative dynamics of oil quotations. We do not rule out further growth of the USD/CAD currency pair. Today, investors will evaluate important economic releases from Canada. We recommend opening positions from these marks.

At 15:30 (GMT+2:00) Canada will release a report on retail sales.

USD/CAD

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

MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.31200, 1.30900, 1.30750
  • Resistance levels: 1.31500, 1.31700

If the price fixes above 1.31500, expect further growth of USD/CAD toward 1.31800-1.32200.

Alternatively, the quotes could descend toward 1.30900-1.30700.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.832
  • Open: 109.487
  • % chg. over the last day: -0.25
  • Day's range: 109.439 – 109.652
  • 52 wk range: 104.45 – 113.53

Bearish sentiment prevails on USD/JPY currency pair. The trading instrument has set new local lows. At the moment USD/JPY is consolidating in the range 109.450-109.650. The demand for save haven currencies remains at a fairly high level. We do not rule out further growth of the yen against the US dollar. We recommend you to pay attention to the dynamics of US government bond yields. Positions should be opened from key levels.

The news background on the Japanese economy is quite calm.

USD/JPY

Indicators do not give accurate signals: the price is testing 50 MA.

MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 109.450, 109.300, 109.000
  • Resistance levels: 109.650, 109.850

If the price fixes below 109.450, expect a descend toward 109.200-109.000.

Alternatively, the quots could grow toward 109.800-110.000.

by JustForex, 2020.01.24

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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