The Analytical Overview of the Main Currency Pairs on 2020.03.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11711
  • Open: 1.11346
  • % chg. over the last day: -0.31
  • Day's range: 1.11305 – 1.11426
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair has stabilized after a long rally. At the moment the trading instrument is consolidating. EUR/USD quotes are testing key support and resistance levels at 1.11100 and 1.11850, respectively. Investors continue to assess the risks of COVID-19 virus spreading. The U.S. House of Representatives plans to allocate $8.3 bln to fight the epidemic. The greenback is under pressure from the prospects of further easing the Fed's monetary policy. Futures indicate a 50% probability that the Central Bank will cut interest rates by another 50 basis points by July. We recommend opening positions from key levels.

The Economic News Feed for 05.03.2020:

  • - Initial Jobless Claims (US) – 15:30 (GMT+2:00);
  • - Volume of Industrial Orders (US) – 17:00 (GMT+2:00);
EUR/USD

Indicators do not give accurate signals: the price has fixed between 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 below the %D line, which indicates a correction of the EUR/USD currency pair.

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: 1.28117
  • Open: 1.28697
  • % chg. over the last day: +0.46
  • Day's range: 1.28607 – 1.28892
  • 52 wk range: 1.1959 – 1.3516

GBP/USD quotes have moved up. The pound has updated the local highs. At the moment GBP/USD currency pair is consolidating near the round level of 1.29000. 1.28400 is already a mirror support. The demand for the US dollar remains at a rather low level. GBP has a potential for further growth against greenback. We recommend opening positions from key levels.

The Economic News Feed for 05.03.2020 is calm.

GBP/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 indicates a bullish sentiment.

The stochastic oscillator is in the neutral zone, the %K line crosses the %D line. No signals at the moment.

Trading recommendations
  • Support levels: 1.28400, 1.27850, 1.27400
  • Resistance levels: 1.29000, 1.29450

If the price fixes above the round level of 1.29000, expect the quotes to grow toward 1.29400-1.29600.

Alternatively, the quotes could descend toward 1.27900-1.27700.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33829
  • Open: 1.33864
  • % chg. over the last day: +0.02
  • Day's range: 1.33846 – 1.34021
  • 52 wk range: 1.2949 – 1.3566

Yesterday, the USD/CAD currency pair showed high trading activity. The Bank of Canada reduced the key interest rate by 50 basis points to 1.25%. This decision was taken by the Board of Governors of the Central Bank in connection with the coronavirus COVID-19 outbreak, which had a significant negative impact on the growth prospects of both the Canadian and global economy. Currently, the CAD is consolidating in the range of 1.33800-1.34300. We recommend paying attention to the dynamics of oil quotations and opening positions from key levels.

The Economic News Feed for 05.03.2020 is calm.

USD/CAD

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

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

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: 1.33800, 1.33200, 1.32650
  • Resistance levels: 1.34300, 1.34600

If the price fixes above 1.34300, expect the quotes to rise toward 1.34600-1.35000.

Alternatively, the quotes could descend toward 1.33300-1.33000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.120
  • Open: 107.529
  • % chg. over the last day: +0.54
  • Day's range: 107.190 – 107.740
  • 52 wk range: 104.45 – 113.53

The USD/JPY has stabilized after a long slump. At the moment the quotes are consolidating. The trading instrument tests the following support and resistance levels 107.000 and 107.800, respectively. Demand for safe haven currencies remains at a high level. However, technical correction of USD/JPY currency pair is not excluded in the nearest future. We recommend paying attention to the dynamics of US government bonds yield and opening from key levels.

The Economic News Feed for 05.03.2020 is calm.

USD/JPY

Indicators do not give accurate signals: the price is consolidating near 50 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 correction of the USD/JPY currency pair.

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, expect the quotes to fall toward 106.600-106.300.

Alternatively, the quotes could correct toward 108.500-109.000.

by JustForex, 2020.03.05

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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