The Analytical Overview of the Main Currency Pairs on 2020.05.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09531
  • Open: 1.09695
  • % chg. over the last day: +0.26
  • Day's range: 1.09251 – 1.09737
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair has become stable after a sharp increase at the end of last week. The trading instrument has set new local highs. Washington is considering imposing new sanctions against Beijing, finding it guilty of the COVID-19 epidemic. The number of coronavirus infected in the world exceeded 3.5 million. At the moment, EUR/USD quotes are consolidating in the range of 1.0925-1.0970. The single currency has the potential for further growth. Positions should be opened from key levels.

The Economic News Feed for 04.05.2020

  • At 10:55 (GMT+3:00), German manufacturing PMI will be published.
EUR/USD

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

The MACD histogram has started declining, indicating the development of the correction movement.

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

Trading recommendations
  • Support levels: 1.0925, 1.0890, 1.0845
  • Resistance levels: 1.0970, 1.1015

If the price fixes above the level of 1.0970, further growth of the EUR/USD currency pair is expected. The movement is tending to 1.1015-1.1040.

An alternative could be a decrease in the EUR/USD quotes to 1.0890-1.0860.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25838
  • Open: 1.24823
  • % chg. over the last day: -0.71
  • Day's range: 1.24242 – 1.24855
  • 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have been declining. The British pound has updated local lows. The demand for risky assets has weakened. At the moment, the GBP/USD currency pair is consolidating. The local support and resistance levels are 1.2425 and 1.2485, respectively. Financial market participants expect additional drivers. A trading instrument has the potential for further decline. 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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.2425, 1.2385, 1.2315
  • Resistance levels: 1.2485, 1.2515, 1.2570

If the price fixes below the support level of 1.2425, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2380-1.2350.

An alternative could be the growth of the GBP/USD currency pair to 1.2530-1.2560.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39385
  • Open: 1.40828
  • % chg. over the last day: +1.01
  • Day's range: 1.40775 – 1.41524
  • 52 wk range: 1.2949 – 1.4668

The bullish sentiment prevails on the USD/CAD currency pair. The trading instrument has set new local highs. The loonie is currently consolidating in the range of 1.4075-1.4150. The demand for risky assets is still low. The Canadian dollar has the potential for further decline against the greenback. We recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

The news feed on Canada's economy is calm.

USD/CAD

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

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

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: 1.4075, 1.4005, 1.3960
  • Resistance levels: 1.4150, 1.4200, 1.4255

If the price fixes above the resistance level of 1.4150, further growth of the USD/CAD quotes is expected. The movement is tending to 1.4200-1.4230.

An alternative could be a decrease in the USD/CAD currency pair to 1.4050-1.4010.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.118
  • Open: 106.800
  • % chg. over the last day: -0.22
  • Day's range: 106.670 – 106.943
  • 52 wk range: 101.19 – 112.41

There is an ambiguous technical pattern on the USD/JPY currency pair. Quotes are in a sideways trend. There is no defined trend. The trading instrument is testing local support and resistance levels: 106.65 and 106.95, respectively. The USD/JPY currency pair is tending to decline. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

USD/JPY

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

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

Trading recommendations
  • Support levels: 106.65, 106.40
  • Resistance levels: 106.95, 107.35, 107.60

If the price fixes below 106.65, USD/JPY quotes are expected to fall. The movement is tending to 106.40-106.20.

An alternative could be the growth of the USD/JPY currency pair to 107.20-107.40.

by JustForex, 2020.05.04

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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