The Analytical Overview of the Main Currency Pairs on 2020.08.03

The EUR/USD currency pair

• Prev Open: 1.18462
• Open: 1.17708
• % chg. over the last day: -0.60
• Day’s range: 1.17404 – 1.17967
• 52 wk range: 1.0777 – 1.1781

The greenback has become stable against a basket of world currencies. Investors have started partially fixing positions. EUR/USD quotes have updated local lows. At the moment, the trading instrument is consolidating in the range of 1.1735-1.1800. The current technical pattern signals further correction of the single currency. Financial market participants are still concerned about the coronavirus pandemic. At the moment, the number of infected in the world has exceeded 18 million. A report on the US labor market for July will be the key event in the current trading week. Positions should be opened from key levels.

• – German manufacturing PMI at 10:55 (GMT+3:00);
• – ISM manufacturing PMI at 17:00 (GMT+3:00).

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

The MACD histogram is in the negative zone, which indicates the development of bearish sentiment.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which indicates the development of a corrective movement.

• Support levels: 1.1735, 1.1685, 1.1625
• Resistance levels: 1.1800, 1.1845, 1.1900

If the price fixes below 1.1735, EUR/USD quotes are expected to correct. The movement is tending to 1.1685-1.1630.

An alternative could be the growth of the EUR/USD currency pair to 1.1840-1.1880.

The GBP/USD currency pair

• Prev Open: 1.30877
• Open: 1.30755
• % chg. over the last day: -0.04
• Day’s range: 1.30150 – 1.31128
• 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have become stable after a prolonged rally. At the moment, the British pound is consolidating. Local support and resistance levels are 1.3020 and 1.3100, respectively. In the near future, a technical correction of the trading instrument is possible. We expect important economic reports from the UK and the US. Positions should be opened from key levels.

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

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

The MACD histogram has been declining, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which indicates a possible correction of the GBP/USD currency pair.

• Support levels: 1.3020, 1.2950, 1.2900
• Resistance levels: 1.3100, 1.3160

If the price fixes below 1.3020, GBP/USD quotes are expected to correct. The movement is tending to 1.2960-1.2920.

An alternative could be the growth of the GBP/USD currency pair to 1.3150-1.3200.

The USD/CAD currency pair

• Prev Open: 1.34243
• Open: 1.34015
• % chg. over the last day: -0.07
• Day’s range: 1.33900 – 1.34412
• 52 wk range: 1.2949 – 1.4668

The technical pattern is still ambiguous on the USD/CAD currency pair. The loonie is being traded in a flat. Investors expect additional drivers. The key support and resistance levels are 1.3400 and 1.3450, respectively. USD/CAD quotes are tending to grow. We expect economic releases from the US. We also 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 buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram has started growing, 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 USD/CAD.

• Support levels: 1.3400, 1.3375, 1.3335
• Resistance levels: 1.3450, 1.3480, 1.3500

If the price fixes above 1.3450, further growth of USD/CAD quotes is expected. The movement is tending to 1.3480-1.3500.

An alternative could be a decrease in the USD/CAD currency pair to 1.3370-1.3350.

The USD/JPY currency pair has been growing. The trading instrument has updated local lows. At the moment, the yen is consolidating in the range of 105.60-106.25. USD/JPY quotes have the potential for further recovery. We recommend paying attention to economic reports, as well as the dynamics of the US government bonds yield. Positions should be opened from key levels.

Japan’s GDP declined by 0.6% (QoQ) in the second quarter. Experts forecasted a fall by 1.1%.

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

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

• Support levels: 105.60, 105.25, 104.80
• Resistance levels: 106.25, 106.70

If the price fixes above 106.25, further growth in USD/JPY quotes is expected. The movement is tending to 106.70-107.00.

An alternative could be a decline in the USD/JPY currency pair to 105.25-104.80.