The Analytical Overview of the Main Currency Pairs on 2020.02.28

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.08823
  • Open: 1.10002
  • % chg. over the last day: +1.06
  • Day's range: 1.09823 – 1.10081
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair shows a pronounced upward trend. The demand for greenback has decreased. Investors made a bet that the Fed may lower interest rates to compensate for the impact of the spreading coronavirus. Yesterday the growth of quotations exceeded 1%. Euro reached the round level of 1.10,000. The mark 1.09650 is a local support. We do not rule out further recovery of the single currency. We expect important economic releases from Germany and USA. Positions should be opened from key levels.

The Economic News Feed for 28.02.2020:

  • - German labour market report – 10:55 (GMT+2:00);
  • - Personal spending in the US – 15:30 (GMT+2:00).
EUR/USD

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 EUR/USD.

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

Trading recommendations
  • Support levels: 1.09650, 1.09100, 1.08600
  • Resistance levels: 1.10100, 1.10500

If the price fixes above 1.10100, further growth of EUR/USD quotes is expected to 1.10400-1.10600.

Alternatively, the quotes could descend toward 1.09300-1.09100.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28956
  • Open: 1.28811
  • % chg. over the last day: -0.14
  • Day's range: 1.28694 – 1.28966
  • 52 wk range: 1.1959 – 1.3516

Bearish sentiment prevails on GBP/USD currency pair. Sterling reached key lows (1.28550). The round level 1.29000 is already a mirror resistance. At the moment the trading instrument is consolidating. GBP/USD quotes have potential for further decline. We recommend that you keep track of the current information regarding the trade negotiations between the UK and the EU. Positions should be opened from key levels.

The Economic News Feed for 28.02.2020 is calm.

GBP/USD

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

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

The 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: 1.28550, 1.28000
  • Resistance levels: 1.29000, 1.29400, 1.29750

If the price fixes below 1.28550, expect the quotes to fall toward 1.28000.

Alternatively, the quotes could recover toward 1.29300-1.29600.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33292
  • Open: 1.33906
  • % chg. over the last day: +0.43
  • Day's range: 1.33789 – 1.34486
  • 52 wk range: 1.2949 – 1.3566

Aggressive purchases are observed on the USD/CAD currency pair. During yesterday's and today's trades quotations growth exceeded 100 points. The CAD is under pressure from a significant drop in oil prices. The trading instrument found resistance at 1.34500. 1.34000 is the nearest support. USD/CAD quotes can grow further. We expect important economic reports from Canada. Positions should be opened from key levels.

At 15:30 (GMT+2:00) will be published data on Canadian GDP.

USD/CAD

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 and above the signal line, which gives a strong signal to buy USD/CAD.

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

Trading recommendations
  • Support levels: 1.34000, 1.33450, 1.33100
  • Resistance levels: 1.34500, 1.35000

If the price fixes above 1.34500, further growth of USD/CAD quotes is expected to the round level 1.35000.

Alternatively, the quotes could descend toward 1.33700-1.33500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 110.401
  • Open: 109.590
  • % chg. over the last day: -0.72
  • Day's range: 108.795 – 109.682
  • 52 wk range: 104.45 – 113.53

USD/JPY quotes show a stable downtrend. During yesterday's and today's trades the yen added more than 150 points in price against the US dollar. Demand for safe haven currencies remains at a high level due to growing risks of further spread of coronavirus. Currently, USD/JPY quotes are consolidating in the range 108.800-109.300. We recommend that you pay attention to the dynamics of US government securities yield. Positions should be opened from key levels.

Mixed economic reports from Japan were published during the Asian trading session.

USD/JPY

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

MACD histogram is in the negative zone, which gives a sell signal for USD/JPY.

The Stochastic Oscillator is located in the oversold area, the %K line crosses the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 108.800, 108.400, 108.000
  • Resistance levels: 109.300, 109.650, 110.200

If the price fixes below 108.800, expect the quotes to fall toward 108.500-108.300.

Alternatively, the quotes could grow toward 109.700-110.000.

by JustForex, 2020.02.28

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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