The Analytical Overview of the Main Currency Pairs on 2020.11.04

The EUR/USD currency pair

• Prev Open: 1.16407
• Open: 1.17127
• % chg. over the last day: +0.61
• Day's range: 1.16028 – 1.17712
• 52 wk range: 1.0637 – 1.2012

Trading activity and volatility have increased significantly in financial markets. The US presidential election is in the spotlight. According to preliminary data, Biden is ahead of Trump, gaining 224 electoral college votes from the required 270, with Trump's 212 votes. At the same time, several important states in the southern United States supported Donald Trump, which could significantly reduce the advantage. At the moment, EUR/USD quotes are consolidating in the range of 1.1655-1.1700. Today, we also recommend paying attention to economic reports from the US. Positions should be opened from key levels.

• - Manufacturing PMI in the Eurozone at 11:00 (GMT+2:00);
• - ADP nonfarm employment change at 15:15 (GMT+2:00);
• - ISM non-manufacturing PMI at 17:00 (GMT+2:00).

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

The MACD histogram is in the negative zone, which indicates the bullish sentiment.

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

• Support levels: 1.1655, 1.1605
• Resistance levels: 1.1700, 1.1740, 1.1770

If the price fixes above 1.1700, EUR/USD quotes are expected to grow. The movement is tending to 1.1740-1.1770.

An alternative could be a decline in the EUR/USD currency pair to the round level of 1.1600.

The GBP/USD currency pair

• Prev Open: 1.29134
• Open: 1.30532
• % chg. over the last day: +1.13
• Day's range: 1.29144 – 1.31399
• 52 wk range: 1.1409 – 1.3516

Trades on the GBP/USD currency pair are very active. At the same time, there is no defined trend. Traders are closely following the results of the US presidential election. At the moment, the British pound is testing local support and resistance levels: 1.2915-1.2985. We recommend opening positions from these marks.

At 11:30 (GMT+2:00), a number of UK PMIs will be published.

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 has crossed the %D line. There are no signals at the moment.

• Support levels: 1.2915, 1.2885, 1.2855
• Resistance levels: 1.2985, 1.3025, 1.3075

If the price fixes above 1.2985, GBP/USD quotes are expected to grow. The movement is tending to 1.3030-1.3060.

An alternative could be a drop in GBP/USD quotes to 1.2870-1.2850.

The USD/CAD currency pair

• Prev Open: 1.32165
• Open: 1.31370
• % chg. over the last day: -0.64
• Day's range: 1.30956 – 1.32992
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have been growing. The trading instrument has updated local highs. At the moment, the loonie is consolidating in the range of 1.3200-1.3280. Further growth of the USD/CAD currency pair is possible. We recommend paying attention to the results of the presidential elections in the United States and the dynamics of "black gold" prices. Positions should be opened from key levels.

The news background on Canada's economy is quite calm.

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

The MACD histogram is in the positive zone, which indicates the bullish sentiment.

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

• Support levels: 1.3200, 1.3140, 1.3100
• Resistance levels: 1.3280, 1.3330, 1.3375

If the price fixes above 1.3280, further growth of USD/CAD quotes is expected. The movement is tending to 1.3330-1.3370.

An alternative may be a decline in the USD/CAD currency pair to 1.3140-1.3100.

The technical pattern on the USD/JPY currency pair is still ambiguous. The trading instrument is consolidating. At the moment, the following key support and resistance levels can be distinguished: 104.55 and 104.95, respectively. Financial market participants expect the outcome of the US presidential election. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

We recommend paying attention to the economic reports from the US.

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

The MACD histogram is in the positive zone, which indicates the bullish sentiment.

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

• Support levels: 104.55, 104.35, 104.15
• Resistance levels: 104.95, 105.30

If the price fixes below 104.55, USD/JPY quotes are expected to fall. The movement is tending to the round level of 104.00.

An alternative could be the growth of the USD/JPY currency pair to 105.20-105.40.

by JustMarkets, 2020.11.04

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.