The Analytical Overview of the Main Currency Pairs on 2020.11.05

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.17127
  • Open: 1.17255
  • % chg. over the last day: +0.09
  • Day's range: 1.17108 – 1.17700
  • 52 wk range: 1.0637 – 1.2012

There is still uncertainty in financial markets. Investors expect the final results of the US presidential election. Today, traders will be focused on the Fed meeting. We expect high trading activity and volatility. We recommend paying attention to the comments by the regulator's representatives. At the moment, EUR/USD quotes are consolidating in the range of 1.1720-1.1770. Positions should be opened from these marks.

News background for 2020.11.05:
  • – Initial jobless claims in the US at 15:30 (GMT+2:00);
  • – Fed interest rate decision at 21:00 (GMT+2:00).
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, which indicates the bullish sentiment.

Stochastic Oscillator is located near the overbought zone, the %K line has crossed the %D line. There are no signals at the moment.

Trading recommendations
  • Support levels: 1.1720, 1.1700, 1.1655
  • Resistance levels: 1.1770, 1.1805, 1.1835

If the price fixes above 1.1770, EUR/USD quotes are expected to grow. The movement is tending to 1.1800-1.1830.

An alternative could be a decline in the EUR/USD currency pair to 1.1660-1.1630.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.30532
  • Open: 1.29873
  • % chg. over the last day: -0.56
  • Day's range: 1.29297 – 1.30410
  • 52 wk range: 1.1409 – 1.3516

Since the beginning of this week, trades on the GBP/USD currency pair have been very active. At the same time, the technical pattern is ambiguous. Today, the Bank of England, as expected, kept its key interest rate at the previous level of 0.10%. The regulator has expanded its £150 billion government bond-buying program to fight the consequences of the COVID-19 pandemic. At the moment, the British pound is consolidating in the range of 1.2985-1.3040. Positions should be opened from these marks.

We recommend paying attention to the news feed on the US economy.

GBP/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.

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.2985, 1.2940, 1.2915
  • Resistance levels: 1.3040, 1.3075, 1.3100

If the price fixes above 1.3040, GBP/USD quotes are expected to grow. The movement is tending to 1.3100-1.3140.

An alternative could be a drop in the GBP/USD quotes to 1.2940-1.2900.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.31370
  • Open: 1.31320
  • % chg. over the last day: -0.02
  • Day's range: 1.31033 – 1.31775
  • 52 wk range: 1.2949 – 1.4669

Trades on the USD/CAD currency pair are very active. At the same time, there is no defined trend. Currently, the loonie is consolidating. Local support and resistance levels are 1.3100 and 1.3165, respectively. Traders expect additional drivers. 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 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 neutral zone, the %K line is above the %D line, which gives a signal to buy USD/CAD.

Trading recommendations
  • Support levels: 1.3100, 1.3050
  • Resistance levels: 1.3165, 1.3210, 1.3280

If the price fixes above 1.3165, USD/CAD quotes are expected to grow. The movement is tending to 1.3210-1.3240.

An alternative could be a decline in the USD/CAD currency pair to 1.3060-1.3040.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 104.449
  • Open: 104.505
  • % chg. over the last day: +0.02
  • Day's range: 104.220 – 104.536
  • 52 wk range: 101.19 – 112.41

USD/JPY quotes continue to consolidate. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 104.15 and 104.45, respectively. Financial market participants expect the results of the US presidential election and the Fed’s decision on monetary policy. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed for Japan’s economy is calm.

USD/JPY

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

Trading recommendations
  • Support levels: 104.15, 104.00, 103.70
  • Resistance levels: 104.45, 104.70, 104.95

If the price fixes below 104.15, USD/JPY quotes are expected to fall. The movement is tending to 104.00-103.70.

An alternative could be the growth of the USD/JPY currency pair to 104.60-104.80.

by Justforex, 2020.11.05

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.

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