The Analytical Overview of the Main Currency Pairs on 2020.03.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11346
  • Open: 1.12397
  • % chg. over the last day: +0.78
  • Day's range: 1.12112 – 1.12488
  • 52 wk range: 1.0879 – 1.1572

The EUR/USD currency pair continues to show positive trends. During yesterday's trading the growth of quotations exceeded 100 points. The EUR found resistance at 1.12500. The mark 1.11800 is already a mirror support. Greenback remains under pressure amid prospects for further Fed interest rate cuts. At the moment, the financial markets participants are waiting for the release of the US Labor Market Report for February. We recommend paying attention to the difference between actual and forecasted values of the indicators. Open positions from key levels and keep an eye on the FOMC presentations.

The Economic News Feed for 06.03.2020 is calm.

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 indicates a bullish sentiment.

The Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a sell signal for EUR/USD.

Trading recommendations
  • Support levels: 1.11800, 1.11000, 1.10500
  • Resistance levels: 1.12500, 1.13000

If the price fixes above 1.12500, further growth of EUR/USD quotes is expected to 1.13000-1.13200.

Alternatively, the EUR/USD currency pair may decline to 1.11400-1.11000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28697
  • Open: 1.29477
  • % chg. over the last day: +0.60
  • Day's range: 1.29400 – 1.29655
  • 52 wk range: 1.1959 – 1.3516

The GBP/USD currency pair is dominated by bullish sentiments. Sterling has updated the local highs again. The pound was supported by the comments of the Head of the Bank of England. The official believes that more clarity on the COVID-19 virus is needed before rushing to an emergency drop in rates. At the moment, GBP/USD quotes are testing resistance level 1.29700. The mark 1.29100 is already a mirror support. The trading instrument has a potential for further growth. We expect economic releases from the USA. We recommend opening positions from key levels.

The news background on the British economy is quite calm.

GBP/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 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: 1.29100, 1.28600, 1.28250
  • Resistance levels: 1.29700, 1.30150

If the price fixes above 1.29700, expect further growth to 1.30100-1.30400.

Alternatively, the GBP/USD currency pair may decline to 1.28700-1.28400.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.33864
  • Open: 1.34058
  • % chg. over the last day: +0.05
  • Day's range: 1.33870 – 1.34134
  • 52 wk range: 1.2949 – 1.3566

There is a mixed technical picture on the USD/CAD currency pair. The CAD is in sideways movement. USD/CAD quotes are testing local support and resistance levels at 1.33800 and 1.34300, respectively. Investors took a waiting position before the publication of reports on the labor market in the USA and Canada. We also recommend paying attention to the dynamics of black gold prices. Open positions from key levels.

At 15:30 (GMT+2:00) we expect the labor statistics for the Canadian labor market.

USD/CAD

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

MACD histogram is near the 0 mark.

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 grow toward 1.34700-1.35000.

Alternatively, the quotes could descend toward 1.33300-1.33000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.529
  • Open: 106.128
  • % chg. over the last day: -1.18
  • Day's range: 105.754 – 106.263
  • 52 wk range: 104.45 – 113.53

USD/JPY quotes continue showing a steady downtrend. The yen reached its semi-annual highs against the USD. Demand for safe haven currencies remains at a high level. At the moment, the trading instrument is consolidating in the range 105.800-106.500. The focus is on the US labor market report. We also recommend paying attention to the dynamics of US government bond yields. Open positions from key levels.

The Economic News Feed for 06.03.2020 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, which indicates a bearish sentiment.

The Stochastic Oscillator started to exit the oversold zone, the %K line is above the %D line, which indicates a possible correction of the USD/JPY currency pair.

Trading recommendations
  • Support levels: 105.800, 105.000
  • Resistance levels: 106.500, 107.000, 107.700

If the price fixes below 105.800, USD/JPY quotes are expected to fall further. Potential for movement towards the round level of 105.000.

Alternatively, the quotes could correct toward 107.000-107.700.

by JustForex, 2020.03.06

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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