The Analytical Overview of the Main Currency Pairs on 2020.05.06

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09046
  • Open: 1.08408
  • % chg. over the last day: -0.62
  • Day's range: 1.08163 – 1.08450
  • 52 wk range: 1.0777 – 1.1494

EUR/USD quotes continue to show a negative trend. The trading instrument has updated local lows. The single currency is under pressure after an unexpected decision of the Federal Constitutional Court of Germany, which may put into question the country's participation in the ECB stimulus program. At the moment, the EUR/USD currency pair is consolidating in the range of 1.0815-1.0855. The euro has the potential for further decline against the greenback. We expect the publication of important statistics. Positions should be opened from key levels.

The Economic News Feed for 06.05.2020

  • - Indicators of economic activity in the Eurozone at 11:00 (GMT+3:00);
  • - Retail sales in the Eurozone at 12:00 (GMT+3:00);
  • - ADP nonfarm employment change at 15:15 (GMT+3:00).
EUR/USD

Indicators signal the power of sellers: the price has fixed below 100 MA.

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

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: 1.0815, 1.0785, 1.0760
  • Resistance levels: 1.0855, 1.0885, 1.0925

If the price fixes below 1.0815, a further drop in the EUR/USD currency pair is expected. The movement is tending to 1.0780-1.0750.

An alternative could be the growth of EUR/USD quotes to 1.0880-1.0920.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24408
  • Open: 1.24384
  • % chg. over the last day: -0.06
  • Day's range: 1.24224 – 1.24507
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair is still being traded in a flat. There is no defined trend. Local support and resistance levels are 1.2425 and 1.2485, respectively. Financial market participants expect the Bank of England meeting, which will be held on Thursday, May 07. Today we recommend paying attention to the news feed on the US economy. Positions should be opened from key support and resistance levels.

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

GBP/USD

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

The MACD histogram has approached the 0 mark.

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

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

If the price fixes below the support level of 1.2425, GBP/USD quotes are expected to fall. 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: 1.40862
  • Open: 1.40499
  • % chg. over the last day: -0.27
  • Day's range: 1.40230 – 1.40776
  • 52 wk range: 1.2949 – 1.4668

There is an ambiguous technical pattern on the USD/CAD currency pair. A trading instrument is consolidating. The loonie is testing the following key support and resistance levels: 1.4005 and 1.4075, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of "black gold" prices. Positions should be opened from key levels.

The news feed on Canada's economy is calm.

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: 1.4005, 1.3940
  • Resistance levels: 1.4075, 1.4115, 1.4150

If the price fixes below the support level of 1.4005, USD/CAD quotes are expected to fall. The movement is tending to 1.3960-1.3940.

An alternative could be the growth of the USD/CAD currency pair to 1.4100-1.4140.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.723
  • Open: 106.470
  • % chg. over the last day: -0.14
  • Day's range: 106.207 – 106.618
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has been declining. The trading instrument has set new local lows. USD/JPY quotes found support at the level of 106.20. The 106.45 mark is already a "mirror" resistance. The demand for "safe haven" currencies is still high. The yen has the potential for further growth against the US currency. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

USD/JPY

Indicators signal the power of sellers: the price has fixed below 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 started crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 106.20, 106.00
  • Resistance levels: 106.45, 106.60, 106.85

If the price fixes below 106.20, a further drop in USD/JPY quotes is expected. The movement is tending to 107.90-107.60.

An alternative could be the growth of the USD/JPY currency pair to 106.70-107.00.

by JustForex, 2020.05.06

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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