The Analytical Overview of the Main Currency Pairs on 2020.05.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.07936
  • Open: 1.08317
  • % chg. over the last day: +0.36
  • Day's range: 1.08223 – 1.08548
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair has moved away from local lows. Investors have started partially fixing greenback positions before today's US labor market report. Experts forecast a decrease in the number of jobs in the US economy by 22.1 million in April. The unemployment rate will reach 16.0%. We recommend paying attention to the difference between the actual and forecasted values. At the moment, EUR/USD quotes are consolidating in the range of 1.0815-1.0855. Positions should be opened from these marks.

The Economic News Feed for 08.05.2020

  • At 15:30 (GMT+3:00), the US labor statistics for April will be published.
EUR/USD

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy 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: 1.0815, 1.0775, 1.0750
  • Resistance levels: 1.0855, 1.0885, 1.0925

If the price fixes above 1.0855, further recovery of the EUR/USD currency pair is expected. The movement is tending to 1.0885-1.0925.

An alternative could be a drop in EUR/USD quotes to 1.0780-1.0750.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.23364
  • Open: 1.23508
  • % chg. over the last day: +0.16
  • Day's range: 1.23498 – 1.24086
  • 52 wk range: 1.1466 – 1.3516

There is an ambiguous technical pattern on the GBP/USD currency pair. The British pound is consolidating. Financial market participants have taken a wait-and-see attitude before today's report on the US labor market. At the moment, the local support and resistance levels are 1.2350 and 1.2410, respectively. It should be recalled that earlier the Bank of England kept the key marks of monetary policy at the same level. We recommend opening positions from key levels.

GBP/USD

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

The MACD histogram has moved into 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 GBP/USD.

Trading recommendations
  • Support levels: 1.2350, 1.2310, 1.2270
  • Resistance levels: 1.2410, 1.2445, 1.2485

If the price fixes above 1.2410, GBP/USD quotes are expected to rise. The movement is tending to 1.2450-1.2490.

An alternative would be a decrease in the GBP/USD currency pair to 1.2310-1.2260.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.41433
  • Open: 1.39758
  • % chg. over the last day: -1.23
  • Day's range: 1.39250 – 1.39891
  • 52 wk range: 1.2949 – 1.4668

There are aggressive sales on the USD/CAD currency pair. During yesterday's and today's trading sessions, the drop in quotes exceeded 200 points. The trading instrument has set new local lows. The loonie is supported by price recovery in the "black gold" market. At the moment, the USD/CAD currency pair is consolidating in the range of 1.3925-1.3975. Investors expect important economic reports from the US and Canada. Positions should be opened from key levels.

At 15:30 (GMT+3:00), statistics on Canada's labor market will be published.

USD/CAD

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

Trading recommendations
  • Support levels: 1.3925, 1.3890, 1.3850
  • Resistance levels: 1.3975, 1.4010, 1.4050

If the price fixes below the support level of 1.3925, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3880-1.3850.

An alternative could be the growth of the USD/CAD currency pair to 1.4020-1.4050.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.083
  • Open: 106.275
  • % chg. over the last day: +0.12
  • Day's range: 106.220 – 106.461
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is consolidating. There is no defined trend. Financial market participants expect a report on the US labor market for April. At the moment, USD/JPY quotes are testing local support and resistance levels: 106.20 and 106.45, respectively. 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 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: 106.20, 106.00
  • Resistance levels: 106.45, 106.65, 106.85

If the price fixes above 106.45, USD/JPY quotes are expected to rise. The movement is tending to 106.70-107.00.

An alternative could be a decrease in the USD/JPY currency pair to 105.80-105.60.

by JustForex, 2020.05.08

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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