The Analytical Overview of the Main Currency Pairs on 2020.06.17

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13244
  • Open: 1.12620
  • % chg. over the last day: -0.53
  • Day's range: 1.12360 – 1.12940
  • 52 wk range: 1.0777 – 1.1494

The demand for risky assets has weakened again. EUR/USD quotes have updated local lows. Investors are concerned about the second outbreak of coronavirus. The Fed Chairman Jerome Powell confirmed the grim picture of the prospects for economic recovery in the US after the COVID-19 virus pandemic. At the same time, positive data on US retail sales supported the greenback. Currently, the EUR/USD currency pair is consolidating in the range of 1.1225-1.1275. We recommend opening positions from these marks.

The Economic News Feed for 2020.06.17:
  • - Consumer price index in the Eurozone at 12:00 (GMT+3:00);
  • - A number of indicators on the real estate market in the US at 15:30 (GMT+3:00).

We also recommend paying attention to the speech by the Fed Chairman.

EUR/USD

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone and continues to decline, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell EUR/USD.

Trading recommendations
  • Support levels: 1.1225, 1.1195, 1.1145
  • Resistance levels: 1.1275, 1.1310, 1.1350

If the price fixes below 1.1225, a further fall in EUR/USD quotes is expected. The movement is tending to 1.1190-1.1160.

An alternative could be the growth of the EUR/USD currency pair to 1.1310-1.1340.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26050
  • Open: 1.25718
  • % chg. over the last day: -0.21
  • Day's range: 1.25350 – 1.25886
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair has been declining. The British pound has updated local lows. The demand for risky assets has weakened. At the moment, the key support and resistance levels are 1.2530 and 1.2600, respectively. A further drop in GBP/USD quotes is possible. We expect statistics on the real estate market in the US, as well as a speech by the Fed Chairman. We recommend opening positions from key levels.

In May, the UK consumer price index met market expectations and counted to +0.5% (y/y).

GBP/USD

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, which indicates the development of bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell GBP/USD.

Trading recommendations
  • Support levels: 1.2530, 1.2480, 1.2455
  • Resistance levels: 1.2600, 1.2675

If the price fixes below 1.2530, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2480-1.2450.

An alternative could be the growth of the GBP/USD currency pair to 1.2640-1.2680.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35668
  • Open: 1.35420
  • % chg. over the last day: -0.21
  • Day's range: 1.35120 – 1.35719
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair is in a sideways trend. There is no defined trend. The loonie is testing the following local support and resistance levels: 1.3510 and 1.3570, respectively. Financial market participants expect additional drivers. We recommend paying attention to the dynamics of oil quotes. Positions should be opened from key levels.

At 15:30 (GMT+3:00), a report on inflation will be published in Canada.

USD/CAD

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

The MACD histogram has moved into the negative zone, which indicates the development of 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: 1.3510, 1.3455, 1.3390
  • Resistance levels: 1.3570, 1.3620, 1.3680

If the price fixes below 1.3510, USD/CAD quotes are expected to fall. The movement is tending to 1.3460-1.3430.

An alternative could be the growth of the USD/CAD currency pair to 1.3620-1.3680.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.325
  • Open: 107.292
  • % chg. over the last day: -0.01
  • Day's range: 107.160 – 107.441
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair is still being traded in a prolonged flat. There is no defined trend. The trading instrument continues to test the following key support and resistance levels: 107.05 and 107.65, respectively. The demand for "safe-haven" currencies has been resumed. 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 the trade balance of Japan have been published.

USD/JPY

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

The MACD histogram is near the 0 mark.

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: 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, 2020.06.17

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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