The Analytical Overview of the Main Currency Pairs on 2020.09.08

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18453
  • Open: 1.18118
  • % chg. over the last day: -0.14
  • Day's range: 1.17951 – 1.18274
  • 52 wk range: 1.0637 – 1.2012

The technical pattern on the EUR/USD currency pair is still ambiguous. The trading instrument continues to consolidate. Financial market participants have taken a wait-and-see attitude before the ECB meeting, which will be held later this week. At the moment, the local support and resistance levels are 1.1790 and 1.1830, respectively. EUR/USD quotes have the potential for further decline. We recommend opening positions from key levels.

At 12:00 (GMT+3:00), preliminary data on the Eurozone GDP will be published.

EUR/USD

Indicators do not give accurate signals: the price is testing 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 has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.1790, 1.1765, 1.1740
  • Resistance levels: 1.1830, 1.1860, 1.1890

If the price fixes below 1.1790, further correction of EUR/USD quotes is expected. The movement is tending to 1.1760-1.1740.

An alternative could be the growth of the EUR/USD currency pair to 1.1860-1.1900.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32438
  • Open: 1.31609
  • % chg. over the last day: -0.61
  • Day's range: 1.31248 – 1.31696
  • 52 wk range: 1.1409 – 1.3516

GBP/USD quotes continue to show a negative trend. The British pound has set new local lows again. The pound is under pressure due to Brexit uncertainty. Boris Johnson said that the trade agreement with the EU should be concluded before October 15, otherwise it will never be met. At the moment, the GBP/USD currency pair is testing the 1.3120 mark. The 1.3180 mark is already a "mirror" resistance. A further decline in GBP/USD quotes is possible. Positions should be opened from key levels.

The publication of important UK economic reports is not planned.

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 gives a signal to sell GBP/USD.

Stochastic Oscillator is in the neutral zone, the %K line has started crossing the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.3120, 1.3050
  • Resistance levels: 1.3180, 1.3230, 1.3260

If the price fixes below 1.3120, a further drop in GBP/USD quotes is expected. The movement is tending to 1.3070-1.3050.

An alternative could be the growth of the GBP/USD currency pair to 1.3230-1.3260.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30464
  • Open: 1.30934
  • % chg. over the last day: +0.14
  • Day's range: 1.30864 – 1.31200
  • 52 wk range: 1.2949 – 1.4669

The loonie is in a sideways trend. The technical pattern is ambiguous. USD/CAD quotes are testing local support and resistance levels: 1.3080 and 1.3120, respectively. Financial market participants expect additional drivers. The trading instrument is tending to grow. 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.

USD/CAD

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

The MACD histogram has started rising, which indicates 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: 1.3080, 1.3045, 1.2995
  • Resistance levels: 1.3120, 1.3150, 1.3180

If the price fixes above 1.3120, USD/CAD quotes are expected to grow. The movement is tending to 1.3150-1.3180.

An alternative could be a decline in the USD/CAD currency pair to 1.3045-1.3020.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.217
  • Open: 106.270
  • % chg. over the last day: +0.03
  • Day's range: 106.196 – 106.314
  • 52 wk range: 101.19 – 112.41

USD/JPY quotes continue to consolidate. There is no defined trend. Investors expect additional drivers. Local support and resistance levels are still: 106.00 and 106.35, respectively. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Japan's GDP has shown the worst decline in post-war history amid the consequences of the COVID-19 epidemic. The figure decreased by 28.1%.

USD/JPY

Indicators do not give accurate signals: the price has crossed the 50 MA and 100 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: 106.00, 105.80, 105.60
  • Resistance levels: 106.35, 106.55, 106.90

If the price fixes above 106.35, USD/JPY quotes are expected to grow. The movement is tending to 106.65-106.90.

An alternative could be a decline in the USD/JPY currency pair to 105.70-105.50.

by Justforex, 2020.09.08

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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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