The Analytical Overview of the Main Currency Pairs on 2020.09.09

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.18118
  • Open: 1.17740
  • % chg. over the last day: -0.32
  • Day's range: 1.17571 – 1.17874
  • 52 wk range: 1.0637 – 1.2012

During yesterday's trading session, the greenback strengthened against its main competitors. The demand for safe-haven currencies has grown significantly. EUR/USD quotes have updated local lows. The conflict between Washington and Beijing has come to the fore again. Financial market participants expect the ECB meeting on September 10. At the moment, the EUR/USD currency pair is consolidating in the range of 1.1755-1.1800. The trading instrument has the potential for further decline. We recommend opening positions from key levels.

At 17:00 (GMT+3:00), data on JOLTS job openings will be published.

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, 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 EUR/USD.

Trading recommendations
  • Support levels: 1.1755, 1.1700
  • Resistance levels: 1.1800, 1.1830, 1.1865

If the price fixes below 1.1755, a further fall in EUR/USD quotes is expected. The movement is tending to the round level of 1.1700.

An alternative could be the growth of the EUR/USD currency pair to 1.1830-1.1860.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31609
  • Open: 1.29806
  • % chg. over the last day: -1.36
  • Day's range: 1.29190 – 1.29878
  • 52 wk range: 1.1409 – 1.3516

There are aggressive sales on the GBP/USD currency pair. Since the beginning of this week, the British pound has lost more than 300 points against the US dollar. The pound is still under pressure due to uncertainty concerning Brexit. At the moment, the trading instrument is consolidating in the range of 1.2920-1.2975. The demand for greenback has resumed. A further decline in the GBP/USD currency pair 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 crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.2920, 1.2850
  • Resistance levels: 1.2975, 1.3050, 1.3140

If the price fixes below 1.2920, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2870-1.2840.

An alternative could be the growth of the GBP/USD currency pair to 1.3040-1.3070.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30934
  • Open: 1.32325
  • % chg. over the last day: +1.04
  • Day's range: 1.32172 – 1.32594
  • 52 wk range: 1.2949 – 1.4669

Purchases prevail on the USD/CAD currency pair. Yesterday, the growth of quotes exceeded 150 points. The loonie is under pressure due to a sharp decline in oil prices since the beginning of this week. At the moment, the trading instrument is consolidating in the range of 1.3215-1.3255. Investors have taken a wait-and-see attitude before today's meeting of the Bank of Canada. The regulator is expected to keep the key marks of monetary policy unchanged. Positions should be opened from key levels.

At 17:00 (GMT+3:00), the Bank of Canada will announce its decision on the key interest rate.

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, 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: 1.3215, 1.3180, 1.3140
  • Resistance levels: 1.3255, 1.3300

If the price fixes above 1.3255, further growth in USD/CAD quotes is expected. The movement is tending to 1.3300-1.3320.

An alternative could be a decline in the USD/CAD currency pair to 1.3180-1.3140.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 106.270
  • Open: 106.011
  • % chg. over the last day: -0.23
  • Day's range: 105.791 – 106.051
  • 52 wk range: 101.19 – 112.41

The technical pattern on the USD/JPY currency pair is still ambiguous. The trading instrument continues to consolidate. Financial market participants expect additional drivers. At the moment, the local support and resistance levels are still: 105.80 and 106.10, respectively. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

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

USD/JPY

Indicators do not give accurate signals: 50 MA has crossed 100 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 neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 105.80, 105.60, 105.25
  • Resistance levels: 106.10, 106.35, 106.55

If the price fixes above 106.10, USD/JPY quotes are expected to grow. The movement is tending to 106.50-106.70.

An alternative could be a decline in the USD/JPY currency pair to 105.50-105.20.

by Justforex, 2020.09.09

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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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