The Analytical Overview of the Main Currency Pairs on 2020.12.09

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2109
  • Prev Close: 1.2103
  • % chg. over the last day: -0.05%

Today the EUR/USD currency pair has increased a bit amid positive news from Britain and the United States. But there is no clear signal to one of the sides yet. In fact, the asset is stuck in a sideways range and it’s expected that there will be more news from the ECB on Thursday. Stochastic shows uncertain northern movement. The MACD is back in the positive zone but is very low. The price is stuck near the moving averages SMA 50 and SMA 100 without a clear fixation on one side.

Trading recommendations
  • Support levels: 1.2040, 1.1924
  • Resistance levels: 1.2175, 1.2167

The main scenario for trading EUR/USD is working in a narrow sideways range between 1.2100 and 1.2167 or waiting for a clearer signal in the direction. Despite the solid retention of the price near new annual highs, the fundamental component indicates the weakness of the currency. The bulls still need to be careful.

Alternative scenario: if the price fixes above the level of 1.2175 on the H1 timeframe, the currency pair is likely to return to growth to 1.2270. A breakdown of 1.2100 can send the currency pair to 1.2040.

EUR/USD
News feed for 2020.12.09:
  • – There is no news feed for today.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.3380
  • Prev Close: 1.3356
  • % chg. over the last day: -0.18%

Today, sterling is returning its losses amid positive expectations from the meeting of the two parties concerning the Brexit negotiations (Von der Leyen and Boris Johnson). The credit market doesn’t imply any good news, therefore the movement may turn out to be speculative. You should be vigilant, especially in the evening. On the technical side, the price has passed all Tuesday’s marks, which indicates a steady growth. Stochastic indicates short-term overbought and a pullback can be expected. Fixation above the moving averages and last day's resistance hints at the possibility of following to 1.3539.

Trading recommendations
  • Support levels: 1.3289, 1.3225
  • Resistance levels: 1.3539

The main scenario for the currency pair is cautious buying until the second half of the American session. If the price remains in an uptrend after Boris Johnson’s statements, purchases will remain relevant.

Alternative scenario: if the price fixes above 1.3398, you can consider selling the currency pair.

GBP/USD
News feed for 2020.12.09:
  • – Boris Johnson and Von der Leyen’s meeting in the evening (GMT+2).
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The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 104.07
  • Prev Close: 104.18
  • % chg. over the last day: +0.12%

Tuesday failed to demonstrate a way out of the sideways range. The pair is firmly stuck around 104.00, which looks a lot like consolidation after a serious move. In its turn, this indicates the strength of the bears in the long term. From a technical point of view, the pair remains stuck in the short term. None of the indicators give a clear signal to the direction.

Trading recommendations
  • Support levels: 103.83, 103.68
  • Resistance levels: 104.74

The main trading scenario for the pair: we consider trading in a sideways range. Fundamentally, there are some positive moments for the USD/JPY from the bond market, where yields are rising. The pair is likely to head towards 104.33. The breakdown will give a signal to follow up to the resistance level of 104.74.

An alternative scenario assumes a breakdown of 103.68 and a fall to 103.20 – 103.10.

USD/JPY
News feed for 2020.12.09:
  • There is no news feed for today.

The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.2796
  • Prev Close: 1.2817
  • % chg. over the last day: +0.16%

On Tuesday, the pair failed to fix above the moving average SMA 100 and the Canadian currency was demonstrating growth against the US dollar in the morning. The support level 1.2770 seems strong, but it was not possible to pass the levels above. The MACD and Stochastic do not give clear signals. You should be careful during the American session when the Bank of Canada conducts its next meeting.

Trading recommendations
  • Support levels: 1.2770
  • Resistance levels: 1.2835, 1.2886, 1.3026

The main scenario: we recommend considering buying an asset within the correction, but after it fixes above the average SMA 50 and SMA 100 on the H1 timeframe, or from the support level 1.2770 with a short stop-loss.

Alternative scenario: if the price is able to break through the support of 1.2770, it is likely to continue falling down to 1.2527.

USD/CAD
News feed for 2020.12.09:
  • – Meeting of the Central Bank of Canada at 17:00 (GMT+2)

by Justforex, 2020.12.09

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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