The Analytical Overview of the Main Currency Pairs on 2020.05.21

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.09231
  • Open: 1.09794
  • % chg. over the last day: +0.51
  • Day's range: 1.09523 – 1.09818
  • 52 wk range: 1.0777 – 1.1494

The single currency has continued to grow against the greenback. EUR/USD quotes have set new local highs. Investors assess the FOMC meeting minutes. The regulator plans to keep rates near zero until there is confidence in a stable recovery in the US economy. At the moment, the EUR/USD currency pair is consolidating in the range of 1.0950-1.0990. A trading instrument has the potential for further growth. We expect important economic releases from Germany, the Eurozone and the US. We recommend opening positions from key levels.

News background on 2020.05.21:
  • - A number of indicators on economic activity in Germany and the Eurozone at 10:30 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • - Initial jobless claims in the US at 15:30 (GMT+3:00);
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00);
  • - Existing home sales in the US at 17:00 (GMT+3:00).

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

EUR/USD

Indicators signal the power of buyers: the price has fixed above 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 above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.0950, 1.0920, 1.0900
  • Resistance levels: 1.0990, 1.1030, 1.1060

If the price fixes above 1.0990, further growth of EUR/USD quotes is expected. The movement is tending to 1.1030-1.1050.

An alternative could be a drop in EUR/USD quotes to 1.0920-1.0900.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22539
  • Open: 1.22340
  • % chg. over the last day: -0.10
  • Day's range: 1.21856 – 1.22439
  • 52 wk range: 1.1466 – 1.3516

The technical pattern is still ambiguous on the GBP/USD currency pair. The British pound continues to consolidate. At the moment, the local support and resistance levels are: 1.2175 and 1.2225, respectively. Financial market participants expect additional drivers. Today, investors will assess important statistics on the UK and US economies. We recommend opening positions from key levels.

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

GBP/USD

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

The MACD histogram is in the negative zone, which gives a signal to sell GBP/USD.

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

Trading recommendations
  • Support levels: 1.2175, 1.2135, 1.2075
  • Resistance levels: 1.2225, 1.2280, 1.2325

If the price fixes above 1.2225, GBP/USD quotes are expected to rise. The movement is tending to 1.2270-1.2300.

An alternative could be a decrease in the GBP/USD currency pair to 1.2140-1.2100.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.39402
  • Open: 1.39005
  • % chg. over the last day: -0.29
  • Day's range: 1.38985 – 1.39468
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair is still being traded in a flat. There is no defined trend. The local support and resistance levels are: 1.3910 and 1.3960, respectively. The loonie is supported by the recovery of oil quotes. We expect important economic releases from the US. The USD/CAD currency pair has the potential for further decline. 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 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: 1.3910, 1.3870
  • Resistance levels: 1.3960, 1.4020, 1.4065

If the price fixes below the support level of 1.3910, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3870-1.3850.

An alternative could be the growth of the USD/CAD currency pair to 1.4000-1.4030.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.699
  • Open: 107.473
  • % chg. over the last day: -0.17
  • Day's range: 107.473 – 107.848
  • 52 wk range: 101.19 – 112.41

There is an ambiguous technical pattern on the USD/JPY currency pair. The trading instrument is in a sideways trend. There is no defined trend. At the moment, the local support and resistance levels are: 107.55 and 107.85, respectively. Financial market participants expect additional drivers. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Japan published weak trade balance data.

USD/JPY

Indicators do not give accurate signals: the price is consolidating near 50 MA.

The MACD histogram is near the 0 mark.

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: 107.55, 107.35, 107.10
  • Resistance levels: 107.85, 108.05

If the price fixes above 107.85, further growth of USD/JPY quotes is expected. The movement is tending to 108.10-108.30.

An alternative could be a decrease in the USD/JPY currency pair to 107.35-107.10.

by JustForex, 2020.05.20

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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