The Analytical Overview of the Main Currency Pairs on 2020.05.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09695
  • Open: 1.09046
  • % chg. over the last day: -0.48
  • Day's range: 1.08851 – 1.09160
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair has been declining. The trading instrument has updated local lows. The demand for safe assets has grown amid fears of a renewed trade war between Washington and Beijing. The ECB forecasts that Eurozone GDP in 2020 will fall by 5.5%. The single currency has a potential for further decline. At the moment, the local support and resistance levels are 1.0885 and 1.0925, respectively. We expect economic releases from the US. Positions should be opened from key levels.

The Economic News Feed for 05.05.2020

At 17:00 (GMT+3:00), the ISM non-manufacturing PMI will be published.

We also recommend paying attention to the speeches by FOMC representatives.

EUR/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 and continues to decline, which indicates the development of bearish sentiment.

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

Trading recommendations
  • Support levels: 1.0885, 1.0845
  • Resistance levels: 1.0925, 1.0970, 1.1015

If the price fixes below 1.0885, a further fall in the EUR/USD currency pair is expected. The movement is tending to 1.0850-1.0820.

An alternative could be the growth of EUR/USD quotes to 1.0950-1.0980.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24823
  • Open: 1.24408
  • % chg. over the last day: -0.09
  • Day's range: 1.24350 – 1.24740
  • 52 wk range: 1.1466 – 1.3516

There is an ambiguous technical pattern on the GBP/USD currency pair. The British pound is consolidating. There is no defined trend. Local support and resistance levels are still: 1.2425 and 1.2485, respectively. Financial market participants expect indicators of economic activity in the UK. A trading instrument is tending to decline. We recommend opening positions from key support and resistance levels.

At 11:30 (GMT+3:00), data on economic activity will be published in the UK.

GBP/USD

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

The MACD histogram is near 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: 1.2425, 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: 1.40828
  • Open: 1.40862
  • % chg. over the last day: +0.02
  • Day's range: 1.40315 – 1.40918
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable. There is no defined trend. The loonie is currently testing support of 1.4030. The round level of 1.4100 is the key resistance. The Canadian dollar is supported by price recovery in the "black gold" market. We recommend paying attention to the news feed from the US. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on Canada's trade balance will be published.

USD/CAD

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

The MACD histogram has moved into the negative zone, which signals the power of sellers.

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

Trading recommendations
  • Support levels: 1.4030, 1.4000, 1.3940
  • Resistance levels: 1.4100, 1.4150, 1.4200

If the price fixes below the support level of 1.4030, USD/CAD quotes will fall. The movement is tending to 1.3980-1.3960.

An alternative could be the growth of the USD/CAD currency pair to 1.4130-1.4160.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.800
  • Open: 106.723
  • % chg. over the last day: -0.02
  • Day's range: 106.509 – 106.789
  • 52 wk range: 101.19 – 112.41

USD/JPY quotes are in a sideways trend. The technical pattern is ambiguous. At the moment, the trading instrument is testing local support and resistance levels: 106.55 and 106.80, respectively. The demand for safe-haven currencies has grown significantly. We expect economic releases from the US. We also 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 has started crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 106.55, 106.40
  • Resistance levels: 106.80, 107.00, 107.35

If the price fixes below 106.55, USD/JPY quotes are expected to fall. The movement is tending to 106.30-106.00.

An alternative could be the growth of the USD/JPY currency pair to 107.00-107.30.

by JustForex, 2020.05.05

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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