The Analytical Overview of the Main Currency Pairs on 2020.10.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17434
  • Open: 1.17110
  • % chg. over the last day: -0.29
  • Day's range: 1.17052 – 1.17357
  • 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. On Friday, the US published quite weak report on the labor market for September. At the moment, financial market participants expect up-to-date information on Donald Trump’s health status, who caught the coronavirus. The negotiations in the US Congress on a new stimulus package for the country's economy are in the spotlight. EUR/USD quotes are consolidating in the range of 1.1700-1.1740. We recommend opening positions from these marks.

The news feed on 2020.10.05:
  • – Data on economic activity in the Eurozone at 11:00 (GMT+3:00);
  • – ISM non-manufacturing PMI at 17:00 (GMT+3:00).
EUR/USD

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

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 1.1700, 1.1680, 1.1640
  • Resistance levels: 1.1740, 1.1770, 1.1800

If the price fixes above 1.1740, further growth of EUR/USD quotes is expected. The movement is tending to 1.1770-1.1800.

An alternative could be a decline in the EUR/USD currency pair to 1.1670-1.1650.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.28780
  • Open: 1.29321
  • % chg. over the last day: +0.33
  • Day's range: 1.28996 – 1.29538
  • 52 wk range: 1.1409 – 1.3516

Trading activity and volatility on the GBP/USD currency pair remain high. At the same time, the British pound is still in a sideways trend. At the moment, the local support and resistance levels are 1.2890 and 1.2950, respectively. Investors expect new information regarding the Brexit talks. Today, financial market participants will assess important economic releases from the UK and the US. Positions should be opened from key levels.

At 11:30 (GMT+3:00), a number of indicators on economic activity in the UK will be published.

GBP/USD

Indicators do not give accurate signals: the price is testing 50 MA and 100 MA.

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

Trading recommendations
  • Support levels: 1.2890, 1.2830, 1.2800
  • Resistance levels: 1.2950, 1.2975, 1.3000

If the price fixes above 1.2950, further growth of the GBP/USD currency pair is expected. The movement is tending to the round level of 1.3000.

An alternative could be a drop in GBP/USD quotes to 1.2840-1.2820.

Open Account

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.32883
  • Open: 1.32982
  • % chg. over the last day: +0.15
  • Day's range: 1.32722 – 1.33031
  • 52 wk range: 1.2949 – 1.4669

Sales prevail on the USD/CAD currency pair. The loonie is testing local lows. At the moment, USD/CAD quotes are consolidating near the 1.3270 mark. The round level of 1.3300 is the nearest resistance. The trading instrument has the potential for further decline. We recommend paying attention to the economic releases from the US, as well as 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 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 bearish sentiment.

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: 1.3270, 1.3240, 1.3200
  • Resistance levels: 1.3300, 1.3330, 1.3355

If the price fixes below 1.3270, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3240-1.3220.

An alternative could be the growth of the USD/CAD currency pair to 1.3330-1.3360.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 105.530
  • Open: 105.276
  • % chg. over the last day: -0.16
  • Day's range: 105.232 – 105.637
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has recovered most of its losses after a sharp decline on Friday. At the moment, the trading instrument is consolidating. The key support and resistance levels are 105.40 and 105.65, respectively. Financial market participants expect additional drivers. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is quite calm.

USD/JPY

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

The MACD histogram is in the negative zone, which indicates the 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: 105.40, 105.25, 104.95
  • Resistance levels: 105.65, 105.80, 106.00

If the price fixes below 105.40, USD/JPY quotes are expected to fall. The movement is tending to 105.00-104.80.

An alternative could be the growth of the USD/JPY currency pair to the round level of 106.00.

by Justforex, 2020.10.05

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.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Stop and Limit Orders in Forex
There are many gainful opportunities for traders in the forex market, but no one is immune to losses. That’s the reason why traders should employ an efficient trading strategy where both stop and limit orders go hand in hand with other essential aspects of the strategy.
Read more
Top 10 Successful Forex Traders in Indonesia
Due to the growing popularity of forex trading, it’s impossible to stay on the sidelines. What does it take to become one of those confident traders? Is forex trading for you? Find out more about the nature of this industry and have a look at the list of top Indonesian forex traders in 2021.
Read more
Guide to Forex Trading in Indonesia
What is forex trading? It’s freedom – due to the round-the-clock market operation in different parts of the world, hundreds of thousands of traders choose what’s best for them: time frame, asset, strategy, objectives, amount of a deposit, etc. There might be a lot of questions in the beginning of your trading journey, and this article aims to emphasize the essential aspects of this profession.
Read more