The Analytical Overview of the Main Currency Pairs on 2020.06.04

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.11648
  • Open: 1.12348
  • % chg. over the last day: +0.56
  • Day's range: 1.12005 – 1.12366
  • 52 wk range: 1.0777 – 1.1494

Yesterday, the single currency continued its growth against the greenback. EUR/USD quotes have updated local highs again. The trading instrument is currently consolidating. The key range is 1.1185-1.1250. Investors have taken a wait-and-see attitude before today's ECB meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level. We recommend paying attention to the comments by representatives of the Central Bank. Financial market participants will also assess important economic releases from the US. Positions should be opened from key levels.

The Economic News Feed for 2020.06.04:
  • - ECB interest rate decision at 14:45 (GMT+3:00);
  • - Initial jobless claims in the US at 15:30 (GMT+3:00).
EUR/USD

Indicators do not give accurate signals: the price is testing 50 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: 1.1185, 1.1155, 1.1100
  • Resistance levels: 1.1250, 1.1300

If the price fixes above the level of 1.1250, further growth of EUR/USD quotes is expected. The movement is tending to 1.1300-1.1320.

An alternative could be a decrease in the EUR/USD currency pair to 1.1150-1.1100.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25501
  • Open: 1.25710
  • % chg. over the last day: +0.19
  • Day's range: 1.25245 – 1.25806
  • 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have become stable. Financial market participants have started partially fixing positions on the British pound after a prolonged rally. In the near future, a technical correction of the trading instrument is possible. At the moment, the local support and resistance levels are 1.2525 and 1.2575, respectively. We expect economic reports from the UK and the US. We recommend opening positions from key levels.

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

GBP/USD

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

The MACD histogram has moved into the negative zone, which indicates a possible correction of the GBP/USD currency pair.

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: 1.2525, 1.2480, 1.2425
  • Resistance levels: 1.2575, 1.2615

If the price fixes below 1.2525, GBP/USD quotes are expected to correct. The movement is tending to 1.2480-1.2440.

An alternative could be the growth of the GBP/USD currency pair to 1.2610-1.2650.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35171
  • Open: 1.34964
  • % chg. over the last day: -0.17
  • Day's range: 1.34901 – 1.35293
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair continues to consolidate in the range of 1.3480-1.3540. In the near future, the technical correction of the trading instrument after a significant drop over the past two weeks is not ruled out. Financial market participants assess the Bank of Canada meeting. The regulator has kept the key interest rate at the same level of 0.25%. 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 enough.

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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3480, 1.3450, 1.3400
  • Resistance levels: 1.3540, 1.3585, 1.3675

If the price fixes below 1.3480, a further drop in USD/CAD quotes is expected. The movement is tending to the round level of 1.3400.

An alternative could be the growth of the USD/CAD currency pair to 1.3600-1.3640.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 108.671
  • Open: 108.869
  • % chg. over the last day: +0.21
  • Day's range: 108.802 – 109.147
  • 52 wk range: 101.19 – 112.41

The bullish sentiment prevails on the USD/JPY currency pair. The trading instrument has set new local highs. At the moment, USD/JPY quotes are testing the resistance level of 109.15. The 108.80 mark is already a "mirror" support. We do not exclude the further growth of the USD/JPY currency pair. 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 50 MA and 100 MA.

The MACD histogram is in the positive zone, indicating the bullish sentiment.

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: 108.80, 108.50, 108.30
  • Resistance levels: 109.15, 109.50

If the price fixes above 109.15, further growth of USD/JPY quotes is expected. The movement is tending to 109.50-109.70.

An alternative could be a decrease in the USD/JPY currency pair to 108.60-108.30.

by JustForex, 2020.06.04

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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