The Analytical Overview of the Main Currency Pairs on 2020.07.22

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.14439
  • Open: 1.15281
  • % chg. over the last day: +0.71
  • Day's range: 1.15068 – 1.15469
  • 52 wk range: 1.0777 – 1.1494

The greenback has weakened significantly against its main competitors. At the moment, currency majors are stable. EUR/USD quotes are consolidating in the range of 1.1500-1.1545. Investors’ concerns about the coronavirus pandemic have escalated again. The number of infected with coronavirus in the world has exceeded 15 million. US President Donald Trump said that the situation with the COVID-19 epidemic could worsen even more. After four days of negotiations, EU leaders have agreed on a $2 trillion economic recovery plan. We recommend opening positions from key levels.

The news feed on 2020.07.22:
  • – Existing home sales in the US at 17:00 (GMT+3:00).
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 below the %D line, which indicates the bearish sentiment.

Trading recommendations
  • Support levels: 1.1500, 1.1460, 1.1415
  • Resistance levels: 1.1545, 1.1600

If the price fixes above 1.1545, further growth in the EUR/USD quotes is expected. The movement is tending to the round level of 1.1600.

An alternative could be a decline in the EUR/USD currency pair to 1.1470-1.1450.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.26567
  • Open: 1.27264
  • % chg. over the last day: +0.54
  • Day's range: 1.26439 – 1.27405
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair has been declining after prolonged growth. The British pound has updated local lows. At the moment, GBP/USD quotes are consolidating in the range of 1.2635-1.2675. The technical pattern signals a further correction of the trading instrument. We recommend paying attention to the economic reports from the US. Positions should be opened from key levels.

The news feed on the UK economy is calm.

GBP/USD

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

The MACD histogram is near the 0 mark.

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: 1.2635, 1.2590, 1.2570
  • Resistance levels: 1.2675, 1.2715, 1.2765

If the price fixes below 1.2635, further correction of GBP/USD quotes is expected. The movement is tending to 1.2590-1.2570.

An alternative could be the growth of the GBP/USD currency pair to 1.2715-1.2750.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35359
  • Open: 1.34599
  • % chg. over the last day: -0.56
  • Day's range: 1.34371 – 1.34829
  • 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has become stable after a sharp drop since the beginning of this week. The loonie is currently consolidating. Local support and resistance levels are 1.3440 and 1.3480, respectively. In the near future, a technical correction of the trading instrument is possible. We recommend paying attention to the dynamics of the "black gold" prices. Positions should be opened from key levels.

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

USD/CAD

Indicators signal the power of sellers: the price has fixed below 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 is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.3440, 1.3425, 1.3400
  • Resistance levels: 1.3480, 1.3500, 1.3540

If the price fixes below 1.3440, a further fall in USD/CAD quotes is expected. The movement is tending to the round level of 1.3400.

An alternative could be the recovery of USD/CAD currency pair to 1.3520-1.3540.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.204
  • Open: 106.749
  • % chg. over the last day: -0.45
  • Day's range: 106.710 – 107.065
  • 52 wk range: 101.19 – 112.41

In the last sessions trades on the USD/JPY currency pair are very active. At the same time, there is no defined trend. Financial market participants expect additional drivers. At the moment, the following local support and resistance levels can be distinguished: 106.90 and 107.10, respectively. We recommend paying attention to the dynamics of the US government bonds yield. Positions should be opened from key levels.

Today, the news feed on Japan’s economy is quite calm.

USD/JPY

Indicators do not give accurate signals: 50 MA has crossed 200 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell USD/JPY.

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: 106.90, 106.70, 106.40
  • Resistance levels: 107.10, 107.30, 107.40

If the price fixes below 106.90, USD/JPY quotes are expected to fall. The movement is tending to 106.70-106.40.

An alternative could be the growth of the USD/JPY currency pair to 107.30-107.50.

by JustForex, 2020.07.22

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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