The Analytical Overview of the Main Currency Pairs on 2020.08.07

The EUR/USD currency pair

• Prev Open: 1.18595
• Open: 1.18763
• % chg. over the last day: +0.11
• Day’s range: 1.18197 – 1.18831
• 52 wk range: 1.0777 – 1.1781

The EUR/USD currency pair has become stable. The trading instrument is consolidating. Investors have taken a wait-and-see attitude before the publication of the report on the US labor market for July. We recommend paying attention to the difference between the actual and forecasted values. Investors also follow the progress of negotiations in Washington on new measures to stimulate the American economy due to the COVID-19 epidemic. At the moment, the local support and resistance levels are 1.1820 and 1.1880, respectively. Positions should be opened from these marks.

• – Report on the US labor market for July at 15:30 (GMT+3:00).

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

The MACD histogram has moved into the negative zone, which indicates the bearish 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: 1.1820, 1.1800, 1.1740
• Resistance levels: 1.1880, 1.1915

If the price fixes below 1.1820, EUR/USD quotes are expected to correct. The movement is tending to 1.1760-1.1720.

An alternative could be the growth of the EUR/USD currency pair to 1.1910-1.1950.

The GBP/USD currency pair

• Prev Open: 1.31120
• Open: 1.31378
• % chg. over the last day: +0.26
• Day’s range: 1.30976 – 1.31478
• 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 1.3100 and 1.3155, respectively. A technical correction of the trading instrument is possible in the near future. We expect statistics on the US labor market. Positions should be opened from key levels.

The news feed on the UK economy is calm.

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

The MACD histogram has moved into the negative zone, which indicates the bearish sentiment.

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

• Support levels: 1.3100, 1.3040, 1.2980
• Resistance levels: 1.3155, 1.3185

If the price fixes below 1.3100, GBP/USD quotes are expected to correct. The movement is tending to 1.3050-1.3000.

An alternative could be further growth of the GBP/USD currency pair to 1.3200-1.3230.

The USD/CAD currency pair

• Prev Open: 1.32660
• Open: 1.32863
• % chg. over the last day: +0.30
• Day’s range: 1.32843 – 1.33727
• 52 wk range: 1.2949 – 1.4668

The USD/CAD currency pair has been growing. During yesterday’s and today’s trading sessions, the growth of quotes exceeded 90 points. The trading instrument has set new local highs. The loonie is under pressure due to the falling of “black gold” prices. At the moment, the Canadian dollar is consolidating in the range of 1.3330-1.3370. Financial market participants expect reports on the labor market in the US and Canada. Positions should be opened from key levels.

At 15:30 (GMT+3:00), data on the labor market will be published in Canada.

Indicators signal the power of buyers: the price has fixed above 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: 1.3330, 1.3290, 1.3255
• Resistance levels: 1.3370, 1.3400, 1.3420

If the price fixes above 1.3370, further growth in USD/CAD quotes is expected. The movement is tending to 1.3400-1.3420.

An alternative could be a decline in the USD/CAD currency pair to 1.3290-1.3270.

The USD/JPY currency pair is being traded in a prolonged flat. There is no defined trend. USD/JPY quotes continue to test the key support and resistance levels: 105.30 and 105.80, respectively. The US labor market report for July is in the spotlight. We also 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 enough.

Indicators do not give accurate signals: 50 MA has crossed 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 has crossed the %D line. There are no signals at the moment.

• Support levels: 105.30, 104.80, 104.20
• Resistance levels: 105.80, 106.20, 106.45

If the price fixes above 105.80, USD/JPY quotes are expected to grow. The movement is tending to 106.20-106.50.

An alternative could be a decline in the USD/JPY currency pair to 104.80-104.60.