The Analytical Overview of the Main Currency Pairs on 2020.06.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12342
  • Open: 1.13244
  • % chg. over the last day: +0.64
  • Day's range: 1.13192 – 1.13534
  • 52 wk range: 1.0777 – 1.1494

EUR/USD quotes have been growing. During yesterday's trading session, the growth of the single currency exceeded 90 points. The Fed announced the start of the purchase of corporate bonds to support the country's economy, which has been significantly affected by the COVID-19 epidemic. The US presidential administration also said it was preparing a nearly $1 trillion infrastructure package. At the moment, the EUR/USD currency pair is consolidating in the range of 1.1300-1.1350. Financial market participants have taken a wait-and-see attitude before today's speech by the Fed Chairman at 17:00 (GMT+3:00). Positions should be opened from key levels.

The Economic News Feed for 2020.06.16:
  • - ZEW economic sentiment indices in Germany and the Eurozone at 12:00 (GMT+3:00).
  • - Report on retail sales in the US at 15:30 (GMT+3:00).
EUR/USD

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

The MACD histogram is in the positive zone, which indicates the development of 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: 1.1300, 1.1265, 1.1220
  • Resistance levels: 1.1350, 1.1400

If the price fixes above 1.1350, further growth of EUR/USD quotes is expected. The movement is tending to 1.1400-1.1420.

An alternative could be a decrease in the EUR/USD currency pair to 1.1270-1.1230.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25091
  • Open: 1.26050
  • % chg. over the last day: +0.76
  • Day's range: 1.25864 – 1.26874
  • 52 wk range: 1.1466 – 1.3516

There is an ambiguous technical pattern on the GBP/USD currency pair. The British pound is currently consolidating. The key support and resistance levels are 1.2600 and 1.2675, respectively. Investors expect additional drivers. Speech by the Fed Chairman, as well as a report on US retail sales, are in the spotlight. We recommend opening positions from key levels.

The UK has published a rather weak labor market report.

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 development of bearish sentiment.

Trading recommendations
  • Support levels: 1.2600, 1.2545, 1.2480
  • Resistance levels: 1.2675, 1.2725, 1.2755

If the price fixes below the round level of 1.2600, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2560-1.2530.

An alternative could be the growth of the GBP/USD currency pair to 1.2720-1.2750.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.36012
  • Open: 1.35668
  • % chg. over the last day: -0.47
  • Day's range: 1.35112 – 1.35982
  • 52 wk range: 1.2949 – 1.4668

The technical pattern on the USD/CAD currency pair is ambiguous. The loonie is in a sideways trend. At the moment, the key support and resistance levels are 1.3510 and 1.3590, respectively. Financial market participants expect a speech by the Fed Chairman. We also 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 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 USD/CAD.

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

Trading recommendations
  • Support levels: 1.3510, 1.3455, 1.3390
  • Resistance levels: 1.3590, 1.3680

If the price fixes above 1.3590, USD/CAD quotes are expected to grow. The movement is tending to 1.3660-1.3700.

An alternative could be a decrease in the USD/CAD currency pair to 1.3460-1.3420.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.316
  • Open: 107.325
  • % chg. over the last day: +0.01
  • Day's range: 107.231 – 107.638
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still being traded in a flat. There is no defined trend. At the moment, the key support and resistance levels are 107.05 and 107.65, respectively. The technical pattern signals a possible correction of USD/JPY quotes. We expect the speech by the Fed Chairman, as well as a report on US retail sales. Positions should be opened from key levels.

The Bank of Japan, as expected, kept the key marks of monetary policy unchanged.

USD/JPY

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

The MACD histogram has approached 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: 107.05, 106.60
  • Resistance levels: 107.65, 108.20, 108.55

If the price fixes above 107.65, USD/JPY quotes are expected to rise. The movement is tending to 108.00-108.30.

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

by JustForex, 2020.06.16

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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