The Analytical Overview of the Main Currency Pairs on 2020.10.05

The EUR/USD 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.

• – Data on economic activity in the Eurozone at 11:00 (GMT+3:00);
• – ISM non-manufacturing PMI at 17:00 (GMT+3:00).

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.

• 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

• 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.

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.

• 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.

The USD/CAD 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.

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: 1.3270, 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 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.

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.

• 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 JustMarkets, 2020.10.05

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.