The Analytical Overview of the Main Currency Pairs on 2020.05.11

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.08317
  • Open: 1.08256
  • % chg. over the last day: -0.02
  • Day's range: 1.08238 – 1.08503
  • 52 wk range: 1.0777 – 1.1494

On Friday, the United States released ambiguous statistics on the labor market for April. Currency majors have shown a multidirectional response to this report. The main indicators of the US labor market have deteriorated significantly. At the same time, published data exceeded market expectations. The number of people employed in the nonfarm sector of the country decreased by 20.5 million compared to the forecasted value of 22.0 million. The unemployment rate increased significantly and counted to 14.7%. Experts expected the figure at 16.0%. The coronavirus epidemic is still in the focus of attention. The number of infected with COVID-19 virus in the world has approached the mark of 4 million. Currently, EUR/USD quotes are consolidating in the range of 1.0815-1.0855. Positions should be opened from these marks.

Today, the publication of important economic releases is not planned.

EUR/USD

Indicators do not give accurate signals: the price has crossed 50 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: 1.0815, 1.0775, 1.0750
  • Resistance levels: 1.0855, 1.0885, 1.0925

If the price fixes above 1.0855, the EUR/USD currency pair is expected to recover. 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: 1.23508
  • Open: 1.23933
  • % chg. over the last day: +0.37
  • Day's range: 1.23809 – 1.24377
  • 52 wk range: 1.1466 – 1.3516

The technical pattern on the GBP/USD currency pair is still ambiguous. The British pound is in a sideways trend. Financial market participants assess a report on the US labor market for April. Today, London and Brussels will resume negotiations on relations after Brexit. At the moment, the key support and resistance levels are 1.2365 and 1.2435, respectively. We recommend opening positions from these marks.

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 positive zone, but below the signal line, which gives a weak signal to buy GBP/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: 1.2365, 1.2310, 1.2270
  • Resistance levels: 1.2435, 1.2485, 1.2545

If the price fixes above 1.2435, GBP/USD quotes are expected to rise. The movement is tending to 1.2480-1.2520.

An alternative could be a decrease in the GBP/USD currency pair to 1.2320-1.2280.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39758
  • Open: 1.39325
  • % chg. over the last day: -0.32
  • Day's range: 1.39001 – 1.39463
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable after a significant drop at the end of last week. The loonie is currently consolidating. Investors assess labor market reports in the US and Canada. The key support and resistance levels are 1.3900 and 1.3955, respectively. A trading instrument has the potential for further decline. We recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

Today, the publication of important economic releases is not expected.

USD/CAD

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 is above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations
  • Support levels: 1.3900, 1.3850
  • Resistance levels: 1.3955, 1.4010, 1.4050

If the price fixes below the support level of 1.3900, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3860-1.3840.

An alternative could be the growth of the USD/CAD currency pair to 1.3990-1.4020.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.275
  • Open: 106.515
  • % chg. over the last day: +0.26
  • Day's range: 106.488 – 107.249
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has been growing. The trading instrument has reached key extremes. At the moment, USD/JPY quotes are testing the resistance level of 107.25. The 106.90 mark is already a "mirror" support. The yen has the potential for further decline against the US currency. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is calm.

USD/JPY

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

The MACD histogram is in the positive zone and continues to rise, indicating the bullish sentiment.

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

Trading recommendations
  • Support levels: 106.90, 106.70, 106.45
  • Resistance levels: 107.25, 107.50

If the price fixes above 107.25, further growth of USD/JPY quotes is expected. The movement is tending to 107.50-107.70.

An alternative could be a decrease in the USD/JPY currency pair to 106.70-106.50.

by JustForex, 2020.05.11

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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