The Analytical Overview of the Main Currency Pairs on 2020.04.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09786
  • Open: 1.09079
  • % chg. over the last day: -0.66
  • Day's range: 1.08646 – 1.09112
  • 52 wk range: 1.0777 – 1.1494

Yesterday, the United States published a series of pessimistic economic releases. At the same time, the greenback has strengthened relative to its main competitors. The fall in EUR/USD quotes exceeded 100 points. Demand for risky assets was significantly weakened amid the COVID-19 pandemic. At the moment, the EUR/USD currency pair is consolidating in the range of 1.0860-1.0910. A trading instrument has the potential for further decline. We expect the publication of important statistics. Positions should be opened from key levels.

The Economic News Feed for 16.04.2020

  • - German IFO business climate index at 11:00 (GMT+3:00);
  • - Data on the US real estate market at 15:30 (GMT+3:00);
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).
EUR/USD

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

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell EUR/USD.

Stochastic Oscillator is in the neutral zone, the %K line has started to cross the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.0860, 1.0830, 1.0775
  • Resistance levels: 1.0910, 1.0950, 1.0990

If the price fixes below 1.0860, a further fall in the EUR/USD currency pair is expected. The movement is tending to 1.0830-1.0800.

An alternative could be the growth of EUR/USD quotes to 1.0940-1.0960.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26187
  • Open: 1.25095
  • % chg. over the last day: -0.86
  • Day's range: 1.24606 – 1.25268
  • 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have been declining. The British pound has updated local lows. The trading instrument is currently consolidating. The key range is 1.2440-1.2525. We expect the publication of important economic reports from the US. Investors continue to assess the risks of the further COVID-19 spread and its impact on the global economy. We recommend opening positions from key support and resistance levels.

The news feed on the UK economy is calm.

GBP/USD

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram is in the negative zone, indicating the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy GBP/USD.

Trading recommendations
  • Support levels: 1.2440, 1.2360, 1.2290
  • Resistance levels: 1.2525, 1.2575, 1.2645

If the price fixes above 1.2525, further growth of GBP/USD quotes is expected. The movement is tending to 1.2575-1.2630.

An alternative could be a decrease in the GBP/USD currency pair to 1.2400-1.2350.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.38861
  • Open: 1.41074
  • % chg. over the last day: +1.67
  • Day's range: 1.40884 – 1.41372
  • 52 wk range: 1.2949 – 1.4668

There are aggressive purchases on the USD/CAD currency pair. During yesterday's and today's trading, the growth of quotes exceeded 250 points. The trading instrument has set new local highs. The loonie is under pressure due to the negative dynamics of "black gold" prices. The Bank of Canada, as expected, kept the key marks of monetary policy at the same level. At the moment, the USD/CAD currency pair is consolidating in the range of 1.4070-1.4140. Quotes have the potential for further growth. We recommend opening positions from key levels.

Today, the news feed on Canada’s economy is calm enough.

USD/CAD

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

The MACD histogram is in the positive zone, which indicates the development of bullish sentiment.

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: 1.4070, 1.4000, 1.3925
  • Resistance levels: 1.4140, 1.4200, 1.4260

If the price fixes above the resistance level of 1.4140, further growth of USD/CAD quotes is expected. The movement is tending to the round level of 1.4200.

An alternative could be a decrease in the USD/CAD currency pair to 1.4030-1.4000.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.211
  • Open: 107.378
  • % chg. over the last day: +0.25
  • Day's range: 107.307 – 108.081
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has been growing after a prolonged fall. The trading instrument has updated local highs. At the moment, USD/JPY quotes are consolidating in the range of 107.70-108.10. Investors expect additional drivers. Demand for the “safe haven” currency is still high. We recommend paying attention to the news feed from the US. Positions should be opened from key levels.

The publication of important economic releases from Japan is not planned.

USD/JPY

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram is in the positive zone, indicating the bullish sentiment.

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

Trading recommendations
  • Support levels: 107.70, 107.25, 106.90
  • Resistance levels: 108.10, 108.50

If the price fixes below 107.70, it is necessary to look for entry points to the market to open short positions. The movement is tending to 107.40-107.30.

An alternative could be the growth of the USD/JPY currency pair to 108.40-108.60.

by JustForex, 2020.04.16

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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