The Analytical Overview of the Main Currency Pairs on 2020.03.02

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.10002
  • Open: 1.10416
  • % chg. over the last day: +0.24
  • Day's range: 1.10363 – 1.10738
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair is still dominated by a bullish sentiment. The quotes have updated the local highs again. The demand for USD has decreased significantly. Financial markets participants expect the Fed to reduce the range of key interest rates to 1.00-1.25% at the next meeting on March 18. At the moment the trading instrument is consolidating in the range of 1.10100-1.10700. The EUR can recover further. We are waiting for important statistical data today. Positions should be opened from key levels.

The Economic News Feed for 02.03.2020:

  • - business activity index in German manufacturing sector - 10:55 (GMT+2:00);
  • - ISM's business activity index in the US manufacturing sector - 17:00 (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 below the %D line, which indicates the development of a correction movement.

Trading recommendations
  • Support levels: 1.10100, 1.09600, 1.09100
  • Resistance levels: 1.10700, 1.11000

If the price fixes above 1.10700, expect further growth to 1.11000-1.11200.

Alternatively, the quotes could descend toward 1.09700-1.09500.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28811
  • Open: 1.27878
  • % chg. over the last day: -0.13
  • Day's range: 1.27830 – 1.28507
  • 52 wk range: 1.1959 – 1.3516

Sales dominate on the GBP/USD currency pair. Sterling has set new key lows. At the moment, GBP/USD is consolidating near the mirror resistance at 1.28550. The round level 1.28000 is the nearest support. The trading instrument can decline further. Investors are waiting for important economic releases from the UK and USA. Positions should be opened from key levels.

At 11:30 (GMT+2:00) UK will publish an index of business activity in the manufacturing sector.

GBP/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, 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 below the %D line, which indicates a bearish sentiment.

Trading recommendations
  • Support levels: 1.28000, 1.27300
  • Resistance levels: 1.28550, 1.29000, 1.29400

If the price fixes below the round level of 1.28000, expect a descend toward 1.27500-1.27000.

Alternatively, the quotes could recover toward 1.29000-1.29400.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33906
  • Open: 1.34332
  • % chg. over the last day: +0.11
  • Day's range: 1.33334 – 1.34382
  • 52 wk range: 1.2949 – 1.3566

USD/CAD quotes have moved down. The CAD has updated local lows. The Canadian dollar is supported by the oil price recovery after a prolonged decline. At the moment the trading instrument is consolidating. The key support and resistance levels are: 1.33350 and 1.33900, respectively. The USD/CAD currency pair has a potential for further correction. We recommend you to pay attention to the US economic reports. Positions should be opened from key levels.

The news background on the Canadian economy is calm.

USD/CAD

Indicators do not give accurate signals: the price tests 100 MA.

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

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: 1.33350, 1.33000, 1.32650
  • Resistance levels: 1.33900, 1.34350, 1.34600

If the price fixes below 1.33350, expect further correction toward 1.33000-1.32600.

Alternatively, the quotes could grow toward 1.34300-1.34600.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 109.590
  • Open: 107.449
  • % chg. over the last day: -1.38
  • Day's range: 107.361 – 108.371
  • 52 wk range: 104.45 – 113.53

The USD/JPY has stabilized after a significant drop last week. At the moment the quotes are consolidating. Local support and resistance levels are at 107.850 and 108.500, respectively. Technical correction of the trading instrument is not ruled out in the nearest future. We recommend you to pay attention to the dynamics of US government securities yield. Positions should be opened from key levels.

The news background on 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 but above the signal line, which gives a weak signal to sell USD/JPY.

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

Trading recommendations
  • Support levels: 107.850, 107.350, 107.000
  • Resistance levels: 108.500, 109.300, 109.650

If the price fixes above 108.500, expect the quotes to correct toward 109.000-109.500.

Alternatively, the quotes could decline toward 107.000.

by JustForex, 2020.03.02

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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