The Analytical Overview of the Main Currency Pairs on 2020.05.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.08408
  • Open: 1.07936
  • % chg. over the last day: -0.42
  • Day's range: 1.07862 – 1.08164
  • 52 wk range: 1.0777 – 1.1494

The bearish sentiment prevails on the EUR/USD currency pair. The trading instrument has updated local lows again. The demand for risky assets is still low. According to the European Commission, the unemployment rate in the EU will increase from 6.7% to 9% this year. Eurozone GDP is likely to fall by a record 7.75%, and in 2021 will recover by 6.25%. Investors expect the next report on the initial jobless claims in the US. At the moment, EUR/USD quotes are consolidating in the range of 1.0780-1.0820. We recommend opening positions from these marks.

The Economic News Feed for 07.05.2020

  • - Initial jobless claims in the US at 15:30 (GMT+3:00).
EUR/USD

Indicators signal the power of sellers: the price has fixed below 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 EUR/USD.

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

Trading recommendations
  • Support levels: 1.0780, 1.0760, 1.0730
  • Resistance levels: 1.0820, 1.0855, 1.0885

If the price fixes below 1.0780, a further fall in the EUR/USD currency pair is expected. The movement is tending to 1.0750-1.0730.

An alternative could be the growth of EUR/USD quotes to 1.0850-1.0870.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24384
  • Open: 1.23364
  • % chg. over the last day: -0.75
  • Day's range: 1.23102 – 1.24174
  • 52 wk range: 1.1466 – 1.3516

There are high trading activity and volatility on the GBP/USD currency pair. Financial market participants assess the Bank of England meeting. The regulator, as expected, kept the key marks of monetary policy at the same level. The Central Bank announced its readiness for new incentive measures to counter the impact of the COVID-19 epidemic. At the moment, the local support and resistance levels are 1.2345 and 1.2400, respectively. We recommend opening positions from these marks.

GBP/USD

Indicators do not give accurate signals: the price is testing 50 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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.2345, 1.2310
  • Resistance levels: 1.2400, 1.2445, 1.2485

If the price fixes below the support level of 1.2345, GBP/USD quotes are expected to fall. The movement is tending to 1.2300-1.2280.

An alternative could be the growth of the GBP/USD currency pair to 1.2440-1.2470.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.40449
  • Open: 1.41433
  • % chg. over the last day: +0.70
  • Day's range: 1.40823 – 1.41730
  • 52 wk range: 1.2949 – 1.4668

Last sessions trades on the USD/CAD currency pair have been very active. At the same time, there is no defined trend. At the moment, the technical pattern is ambiguous. The local support and resistance levels are 1.4075 and 1.4120, respectively. Investors expect additional drivers. We recommend paying attention to the dynamics of "black gold" prices. Positions should be opened from key levels.

At 17:00 (GMT+3:00), Ivey PMI will be published.

USD/CAD

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

The MACD histogram is near the 0 mark. There are no signals at the moment.

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: 1.4075, 1.4030
  • Resistance levels: 1.4120, 1.4170

If the price fixes below the support level of 1.4075, USD/CAD quotes are expected to fall. The movement is tending to 1.4040-1.4000.

An alternative could be the growth of the USD/CAD currency pair to 1.4150-1.4180.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.470
  • Open: 106.083
  • % chg. over the last day: -0.41
  • Day's range: 105.990 – 106.522
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has become stable. Financial market participants expect additional drivers. At the moment, USD/JPY quotes are testing the supply zone of 106.50-106.65. The 106.20 mark is the nearest support. We recommend paying attention to economic releases, as well as 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 fixed between 50 MA and 100 MA.

The MACD histogram has started rising, indicating the development of bullish sentiment.

Stochastic Oscillator is near the overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

Trading recommendations
  • Support levels: 106.20, 106.00
  • Resistance levels: 106.50, 106.65, 106.85

If the price fixes above 106.50, USD/JPY quotes are expected to rise. The movement is tending to 106.80-107.00.

An alternative could be a decrease in the USD/JPY currency pair to 106.00-105.80.

by JustForex, 2020.05.07

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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