The Analytical Overview of the Main Currency Pairs on 2020.06.12

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13746
  • Open: 1.12912
  • % chg. over the last day: -0.63
  • Day's range: 1.12766 – 1.13161
  • 52 wk range: 1.0777 – 1.1494

EUR/USD quotes have been declining. The trading instrument has updated local lows. The demand for risky assets has weakened significantly. Financial market participants are concerned about the second wave of COVID-19 outbreak. The United States has reported more than 2 million coronavirus cases as of June 12, as well as a re-wave of infection in the most populous states. Currently, the single currency is consolidating in the range of 1.1275-1.1320. EUR/USD quotes have the potential for further correction. Positions should be opened from key levels.

The Economic News Feed for 2020.06.12:
  • - Eurozone industrial production at 12:00 (GMT+3:00).
EUR/USD

Indicators do not give accurate signals: the price has fixed between 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 overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.1275, 1.1240, 1.1190
  • Resistance levels: 1.1320, 1.1380, 1.1420

If the price fixes below the level of 1.1275, a further fall in EUR/USD quotes is expected. The movement is tending to 1.1240-1.1200.

An alternative could be the growth of the EUR/USD currency pair to 1.1370-1.1400.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.27450
  • Open: 1.26000
  • % chg. over the last day: -1.37
  • Day's range: 1.25452 – 1.26453
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair has been declining. The British pound has updated local lows. At the moment, the key range is 1.2550-1.2640. The demand for risky assets is still low. The British pound is under pressure due to pessimistic economic releases. A further drop in GBP/USD quotes is possible. We recommend opening positions from key levels.

GBP/USD

Indicators do not give accurate signals: the price has crossed 100 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 near the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.2550, 1.2500, 1.2425
  • Resistance levels: 1.2640, 1.2730, 1.2800

If the price fixes below 1.2550, GBP/USD sales should be considered. The movement is tending to 1.2500-1.2460.

An alternative could be the growth of the GBP/USD currency pair to 1.2700-1.2750.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.34115
  • Open: 1.36242
  • % chg. over the last day: +1.59
  • Day's range: 1.35407 – 1.36664
  • 52 wk range: 1.2949 – 1.4668

During yesterday's trading session, aggressive purchases of USD/CAD were observed. Quotes growth has exceeded 220 points. The trading instrument has set new local highs. At the moment, the loonie is stable and consolidating in the range of 1.3530-1.3600. We do not exclude the further growth of USD/CAD quotes. We recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

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

USD/CAD

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 USD/CAD.

Stochastic Oscillator is in the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3530, 1.3480, 1.3430
  • Resistance levels: 1.3600, 1.3665

If the price consolidates above 1.3600, further growth of USD/CAD quotes is expected. The movement is tending to 1.3660-1.3700.

An alternative could be a decrease in the USD/CAD currency pair to 1.3480-1.3430.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.087
  • Open: 106.880
  • % chg. over the last day: -0.23
  • Day's range: 106.585 – 107.529
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has started recovering after a prolonged fall. The trading instrument has updated local highs. At the moment, the key support and resistance levels are 107.10 and 107.60, respectively. The technical pattern signals a further increase in USD/JPY quotes. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

During the Asian trading session, weak data on industrial production were published in Japan.

USD/JPY

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

The MACD histogram has started growing, which indicates the development of bullish sentiment.

Stochastic Oscillator is in the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 107.10, 106.60
  • Resistance levels: 107.60, 107.90, 108.25

If the price fixes above 107.60, further growth of USD/JPY quotes is expected. The movement is tending to 108.00-108.20.

An alternative could be a decrease in the USD/JPY currency pair to 106.70-106.40.

by JustForex, 2020.06.12

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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