The Analytical Overview of the Main Currency Pairs on 2020.01.27

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10534
  • Open: 1.10298
  • % chg. over the last day: -0.26
  • Day's range: 1.10240 – 1.10357
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair has stabilized after a significant drop last week. At the moment, the trading instrument is consolidating. There is no defined trend. The local support and resistance levels are 1.10200 and 1.10400, respectively. Investors are waiting for additional drivers. Technical correction of EUR/USD quotes is not excluded in the nearest future. Open positions from key levels.

The Economic News Feed for 27.01.2020:

  • - IFO business climate index (GER) - 11:00 (GMT+2:00);
  • - Primary Real Estate Sales (US) – 17:00 (GMT+2:00);
EUR/USD

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

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 indicates that the sentiment is bearish.

Trading recommendations
  • Support levels: 1.10200, 1.10000
  • Resistance levels: 1.10400, 1.10600, 1.10750

If the price fixes below 1.10200, expect further decline toward 1.10000-1.09700.

Alternatively, the quotes could recover toward 1.10600-1.10800.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31236
  • Open: 1.30646
  • % chg. over the last day: -0.35
  • Day's range: 1.30515 – 1.30752
  • 52 wk range: 1.1959 – 1.3516

The technical pattern of the GBP/USD currency pair is ambiguous. At the moment the sterling is consolidating. Local support and resistance levels are acting: 1.30500 and 1.30800, respectively. Financial markets participants are waiting for Bank of England meeting, which is scheduled for January 30. We also recommend you to monitor the current information on Brexit. Open positions from key levels.

The news feed on the UK economy is calm.

GBP/USD

The indicators do not give an accurate signal: 50 MA started crossing 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 is above the %D line, which indicates a bullish mood.

Trading recommendations
  • Support levels: 1.30500, 1.30300, 1.30000
  • Resistance levels: 1.30800, 1.31000, 1.31450

If the price fixes below 1.30500, expect the quotes to fall toward 1.30000.

Alternatively, the quotes could grow toward 1.31100-1.31300.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31347
  • Open: 1.31501
  • % chg. over the last day: +0.14
  • Day's range: 1.31477 – 1.31699
  • 52 wk range: 1.2949 – 1.3566

USD/CAD quotes have moved up again. At the moment the trading instrument is testing the resistance level 1.31700. 1.31400 is the nearest support. The technical picture signals the further growth of the USD/CAD currency pair. The pressure on the looney continues to have negative dynamics of oil quotations. Today, we recommend you to pay attention to the economic releases from the USA. Open positions from key levels.

Publication of important statistical data from Canada is not planned.

USD/CAD

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

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

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

Trading recommendations
  • Support levels: 1.31400, 1.31200, 1.30900
  • Resistance levels: 1.31700, 1.32000

If the price fixes above 1.31700, expect further growth toward 1.32000-1.32200.

Alternatively, the quotes could descend toward 1.31200-1.31000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.487
  • Open: 108,928
  • % chg. over the last day: -0.43
  • Day's range: 108.732 – 109.123
  • 52 wk range: 104.45 – 113.53

Bearish sentiment still prevails on USD/JPY currency pair. The trading instrument has renewed the local lows. Investors are concerned about the global demand slowing down amid growing risks of further coronavirus spread in China, which supports the demand for safe haven currencies. At the moment USD/JPY quotes are consolidating in the range 108.750-109.100. We also recommend to pay attention to the dynamics of US government bond yields. Open positions from key levels.

The news feed on the Japanese economy is calm.

USD/JPY

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

Trading recommendations
  • Support levels: 108.750, 108.400
  • Resistance levels: 109.100, 109.300, 109.650

If the price fixes below 108.750, expect the quotes to fall further toward 108.500-108.300.

Alternatively, the quotes could grow toward 109.300-109.500.

by JustForex, 2020.01.27

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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