The Analytical Overview of the Main Currency Pairs on 2020.04.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.08554
  • Open: 1.08105
  • % chg. over the last day: -0.45
  • Day's range: 1.07986 – 1.08355
  • 52 wk range: 1.0777 – 1.1494

The bearish sentiment prevails on the EUR/USD currency pair. On Friday, the US published a weak labor market report for March. The number of people employed in the nonfarm sector of the country fell sharply (701K). The unemployment rate increased from 3.5% to 4.4%. The labor force participation rate decreased from 63.4% to 62.7%. At the same time, the growth in average hourly earnings accelerated from 0.3% to 0.4%. Nevertheless, the demand for greenback is still high. Currently, the EUR/USD quotes are consolidating in the range of 1.07750-1.08350. Positions should be opened from these marks.

Today the news feed is calm.

EUR/USD

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram has approached the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.07750, 1.07200
  • Resistance levels: 1.08350, 1.09000, 1.09700

If the price fixes below the support level of 1.07750, a further fall in the EUR/USD currency pair is expected. The movement is tending to 1.07200-1.07000.

An alternative could be the growth of EUR/USD quotes to a round level of 1.09000.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23997
  • Open: 1.22341
  • % chg. over the last day: -1.07
  • Day's range: 1.22096 – 1.23093
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair has been declining after a prolonged consolidation. The British pound has updated local lows. The pound is under pressure due to weak releases on economic activity in the UK. It also became known that British Prime Minister Boris Johnson, infected with the COVID-19 virus, was hospitalized on Sunday for an examination. At the moment, GBP/USD quotes are consolidating in the range of 1.22100-1.23000. A trading instrument has the potential to further decline. Positions should be opened from key levels.

At 11:30 (GMT+3:00), UK construction PMI will be published.

GBP/USD

Indicators do not give accurate signals: the price has crossed 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.

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

Trading recommendations
  • Support levels: 1.22100, 1.21450, 1.20150
  • Resistance levels: 1.23000, 1.24000, 1.24800

If the price fixes below 1.22100, a further drop in GBP/USD quotes is expected. The movement is tending to 1.21000-1.20500.

An alternative could be the growth of the GBP/USD currency pair to 1.24000-1.24500.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.41358
  • Open: 1.42242
  • % chg. over the last day: +0.49
  • Day's range: 1.40805 – 1.42613
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair is still being traded in a protracted flat. There is no defined trend. Investors expect additional drivers. At the moment, the local support and resistance levels are 1.40800 and 1.42000, respectively. The Canadian dollar is supported by the “black gold” price recovery. USD/CAD quotes are tending to decline. Positions should be opened from key levels.

The news feed on Canada's economy is calm.

USD/CAD

Indicators do not give accurate signals: 50 MA has crossed 100 MA.

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.40800, 1.40100, 1.39250
  • Resistance levels: 1.42000, 1.42700, 1.43350

If the price fixes below 1.40800, USD/CAD quotes are expected to fall. The movement is tending to 1.40100-1.39500.

An alternative could be the growth of the USD/CAD currency pair to 1.42500-1.43000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.886
  • Open: 108.350
  • % chg. over the last day: +0.13
  • Day's range: 108.337 – 109.382
  • 52 wk range: 101.19 – 112.41

USD/JPY quotes show positive dynamics. The trading instrument has updated local highs again. At the moment, the “safe haven” currency is testing the resistance level of 109.400. The 108.700 mark is already a "mirror" support. Financial market participants continue to assess the impact of the COVID-19 epidemic on the global economy. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is calm.

USD/JPY

Indicators signal the power of buyers: the price has fixed above 100 MA.

The MACD histogram is in the positive zone, which indicates an increase in the USD/JPY quotes.

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: 108.700, 108.200, 107.600
  • Resistance levels: 109.400, 110.100

If the price fixes above 109.400, further growth of USD/JPY quotes is expected. The movement is tending to 110.000-110.300.

An alternative could be a decrease in the USD/JPY currency pair to 108.200-107.800.

by JustForex, 2020.04.06

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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