The Analytical Overview of the Main Currency Pairs on 2020.02.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10421
  • Open: 1.09985
  • % chg. over the last day: -0.39
  • Day's range: 1.09942 – 1.10015
  • 52 wk range: 1.0879 – 1.1572

Greenbeck continued its growth against its main competitors. Yesterday the fall of EUR/USD quotes exceeded 45 points. The trading instrument reached key lows. The American currency was supported by the positive economic releases. According to ADP report, in January the number of employed in the non-agricultural sector of the country grew by 291K versus market expectations at 156K. ISM Non-Farm Supply Managers Index accelerated from 54.9 to 55.5. Currently, EUR/USD quotes are consolidated in the range 1.09900-1.10100. Positions should be opened from key levels.

The Economic News Feed for 06.02.2020:

  • - Initial Jobless Claims (US) – 15:30 (GMT+2:00);
EUR/USD

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak sell signal for EUR/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: 1.09900, 1.09500
  • Resistance levels: 1.10100, 1.10300, 1.10500

If the price fixes below 1.09900, further decline of EUR/USD quotes is expected to 1.09600-1.09400.

Alternatively, the quotes could grow to 1.10300-1.10500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30316
  • Open: 1.29994
  • % chg. over the last day: -0.18
  • Day's range: 1.29717 – 1.30014
  • 52 wk range: 1.1959 – 1.3516

The technical picture on the GBP/USD currency pair is ambiguous. Sterling is being traded in a flat. There is no defined trend. At the moment the following key support and resistance levels can be identified: 1.29550 and 1.30100, respectively. Demand for the US dollar remains at a high level. GBP/USD quotes can move further down. We recommend opening positions from key levels.

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

GBP/USD

The price is fixed below 50 MA and 100 MA, which signals the strength of the sellers.

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

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

Trading recommendations
  • Support levels: 1.29550, 1.29000
  • Resistance levels: 1.30100, 1.30450, 1.30700

If the price fixes below 1.29550, expect quotes to fall toward 1.29000.

Alternativel, the quotes could rise toward 1.30500-1.30800.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32765
  • Open: 1.32821
  • % chg. over the last day: +0.09
  • Day's range: 1.32800 - 1.32886
  • 52 wk range: 1.2949 - 1.3566

USD/CAD quotes continue to consolidate after prolonged growth. There is no defined trend. The CAD is testing local support and resistance levels at 1.32650 and 1.33000, respectively. Technical correction is not ruled out in the nearest future. We recommend you to pay attention to the black gold price dynamics. Positions should be opened from key levels.

The news background on Canadian economy is calm.

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 below the %D line, which indicates a bearish mood.

Trading recommendations
  • Support levels: 1.32650, 1.32450, 1.32200
  • Resistance levels: 1.33000, 1.33400

If the price fixes above 1.33000, further growth of USD/CAD quotes is expected to reach 1.33300-1.33500.

Alternatively, the quotes could descend to 1.32300-1.32100. .

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.515
  • Open: 109.817
  • % chg. over the last day: +0.27
  • Day's range: 109.697 – 109.981
  • 52 wk range: 104.45 – 113.53

The USD/JPY currency pair continues to show a stable upward trend. The trading instrument reached the key extremums. At the moment, the safe haven currency is consolidating. Local support and resistance levels are acting 109.700 and 110.000, respectively. We do not rule out further growth of USD/JPY quotes. We recommend you to pay attention to the dynamics of the US government securities yield. Positions should be opened from key levels.

The Economic News Feed for 06.02.2020 is calm.

USD/JPY

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

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

Trading recommendations
  • Support levels: 109.700, 109.550, 109.300
  • Resistance levels: 110.00, 110.250

If the price fixes above 110.000, expect the quotes to rise toward 110.250-110.400.

Alternatively, the quotes could descend toward 109.500-109.300.

by JustForex, 2020.02.06

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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