The Analytical Overview of the Main Currency Pairs on 2020.03.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11305
  • Open: 1.11711
  • % chg. over the last day: +0.38
  • Day's range: 1.11434 – 1.11853
  • 52 wk range: 1.0879 – 1.1572

USD shows a steady downward trend against the basket of world currencies. Yesterday the Fed surprised investors by reducing the key interest rate range by 50 basis points to 1.00%-1.25%, two weeks before the scheduled policy meeting. Head of the Central Bank Powell said that the U.S. economy remains stable, but the virus COVID-19 brought new risks and problems. Currently, EUR/USD quotes are consolidating in the range of 1.11100-1.11850. We expect important economic reports from EU and the USA. Open positions from the key levels.

The Economic News Feed for 04.03.2020:

  • - Business Activity Indicators (EU) – 11:00 (GMT+2:00);
  • - ADP Nonfarm Employment Change (US) – 15:15 (GMT+2:00);
  • - ISM Non-Manufacturing PMI (US) – 17:00 (GMT+2:00);
EUR/USD

The indicators signal the power 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 located in the oversold area, the %K line crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.11100, 1.10500, 1.10000
  • Resistance levels: 1.11850, 1.12200, 1.12500

If the price fixes above 1.11850, expect further growth toward 1.12200-1.12500.

Alternatively, the quotes could decline toward 1.10600-1.10400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27509
  • Open: 1.28117
  • % chg. over the last day: +0.54
  • Day's range: 1.28011 – 1.28303
  • 52 wk range: 1.1959 – 1.3516

The technical pattern on GBP/USD currency pair is still ambiguous. GBP is being traded in a flat with a fairly wide range. Financial markets participants are waiting for additional drivers. At the moment local support and resistance levels are at 1.27850 and 1.28400, respectively. Today investors will evaluate important economic reports from UK and US. Open positions from the key levels.

At 11:30 (GMT+2:00) the UK will publish a number of indicators on business activity.

GBP/USD

Indicators do not give accurate signals: the price has fixed between 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 GBP/USD.

The Stochastic Oscillator has reached the oversold zone, the %K line started crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.27850, 1.27400, 1.27000
  • Resistance levels: 1.28400, 1.29000

If the price fixes below the support level at 1.27850, expect the quotes to fall toward 1.27400-1.27000.

Alternatively, the quotes could grow toward 1.29000.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33288
  • Open: 1.33829
  • % chg. over the last day: +0.40
  • Day's range: 1.33447 – 1.33871
  • 52 wk range: 1.2949 – 1.3566

USD/CAD currency pair is being traded in a flat. There is no defined trend. The CAD is testing key support and resistance levels at 1.33200 and 1.33900, respectively. We do not rule out further correction of the trading instrument. Investors took a waiting position before the Bank of Canada meeting. We also recommend paying attention to the dynamics of oil quotations. Open positions from the key levels.

At 17:00 (GMT+2:00) Bank of Canada will announce its decision on the key interest rate.

USD/CAD

Indicators do not give accurate signals: the price has crossed 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 above the %D line, which indicates a bullish mood.

Trading recommendations
  • Support levels: 1.33200, 1.32650, 1.32150
  • Resistance levels: 1.33900, 1.34600

If the price fixes below 1.33200, expect further correction toward 1.32700-1.32400.

Alternatively, the quotes could grow toward 1.34300-1.34600.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.316
  • Open: 107.120
  • % chg. over the last day: -1.14
  • Day's range: 106.847 – 107.688
  • 52 wk range: 104.45 – 113.53

USD/JPY quotes continue to show negative trends. Yen added more than 120 points in price against the US dollar yesterday. The trading instrument found support near the round level of 107.000. The mark 107.800 is the nearest resistance. Demand for safe haven currencies remains at a high level. We recommend keeping track of the current information regarding the coronavirus spread. Open positions from key levels.

The Economic News Feed for 04.03.2020 is calm.

USD/JPY

The indicators signal the sellers' power: 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 in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 107.000
  • Resistance levels: 107.800, 108.550, 109.300

If the price fixes below the round level of 107.000, USD/JPY quotes are expected to fall further. Potential for movement to 106.600-106.300.

Alternative is the correction of USD/JPY currency pair to 108.500-109.000.

by JustForex, 2020.03.04

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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