The Analytical Overview of the Main Currency Pairs on 2020.09.01

The EUR/USD currency pair

• Prev Open: 1.18974
• Open: 1.19401
• % chg. over the last day: +0.15
• Day's range: 1.19344 – 1.19974
• 52 wk range: 1.0637 – 1.1998

The greenback continues to lose ground against the basket of world currencies due to increased expectations that the Fed rates will remain lower than those of other Central Banks. EUR/USD quotes have updated annual highs. At the moment, the trading instrument is consolidating in the range of 1.1950-1.1995. The single currency has the potential for further growth. Today, we expect the publication of important economic releases. We recommend opening positions from key levels.

• – German manufacturing PMI at 10:55 (GMT+3:00);
• – Report on the labor market in Germany at 10:55 (GMT+3:00);
• – Statistics on inflation in the Eurozone at 12:00 (GMT+3:00);
• – ISM manufacturing PMI at 17:00 (GMT+3:00).

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy EUR/USD.

Stochastic Oscillator has started exiting the overbought zone, the %K line is below the %D line, which indicates the bearish sentiment.

• Support levels: 1.1950, 1.1920, 1.1880
• Resistance levels: 1.1995, 1.2030, 1.2050

If the price fixes above 1.1995, further growth in EUR/USD quotes is expected. The movement is tending to 1.2020-1.2050.

An alternative could be a decline in the EUR/USD currency pair to 1.1920-1.1900.

The GBP/USD currency pair

• Prev Open: 1.33313
• Open: 1.33643
• % chg. over the last day: +0.10
• Day's range: 1.33562 – 1.34419
• 52 wk range: 1.1409 – 1.3516

GBP/USD quotes continue to show a steady uptrend. The British pound has reached key extremes. At the moment, the GBP/USD currency pair is testing resistance at 1.3445. The 1.3355 mark is already a "mirror" support. The demand for greenback is still quite low. The trading instrument has the potential for further growth. Positions should be opened from key levels.

• – Manufacturing PMI in the UK at 11:30 (GMT+3:00).

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy GBP/USD.

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

• Support levels: 1.3355, 1.3300, 1.3255
• Resistance levels: 1.3445, 1.3500

If the price fixes above 1.3445, further growth in GBP/USD quotes is expected. The movement is tending to 1.3500-1.3520.

An alternative could be a decline in the GBP/USD currency pair to 1.3300-1.3270.

The USD/CAD currency pair

• Prev Open: 1.30950
• Open: 1.30403
• % chg. over the last day: -0.29
• Day's range: 1.29955 – 1.30468
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes show a negative trend. During yesterday's and today's trades, the drop in quotes has exceeded 90 points. The trading instrument has set new local lows. The loonie is currently testing the support level of 1.2990. The 1.3050 mark is already a "mirror" resistance. The USD/CAD currency pair has the potential for further decline. 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.

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.

• Support levels: 1.2990, 1.2950
• Resistance levels: 1.3050, 1.3090, 1.3125

If the price fixes below 1.2990, USD/CAD sales should be considered. The movement is tending to 1.2960-1.2940.

An alternative could be the growth of the USD/CAD currency pair to 1.3080-1.3100.

Since the beginning of this week, trades on the USD/JPY currency pair have been quite active. At the same time, there is no defined trend. At the moment, USD/JPY quotes are consolidating. Local support and resistance levels are 105.55 and 105.90, respectively. Investors 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 calm.

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

The MACD histogram has started declining, 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.

• Support levels: 105.55, 105.25, 105.00
• Resistance levels: 105.90, 106.15, 106.40

If the price fixes below 105.55, USD/JPY quotes are expected to fall. The movement is tending to the round level of 105.00.

An alternative could be the growth of the USD/JPY currency pair to 106.30-106.50.

by JustMarkets, 2020.09.01

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.