The Analytical Overview of the Main Currency Pairs on 2020.08.12

The EUR/USD currency pair

• Prev Open: 1.17365
• Open: 1.17404
• % chg. over the last day: +0.03
• Day’s range: 1.17112 – 1.17607
• 52 wk range: 1.0777 – 1.1781

There is an ambiguous technical pattern on the EUR/USD currency pair. The trading instrument is consolidating. Financial market participants expect additional drivers. The demand for greenback is supported by the growth of US government bonds yield. At the moment, the local support and resistance levels are 1.1710 and 1.1765, respectively. We recommend opening positions from these marks.

• – Report on inflation in the US at 15:30 (GMT+3:00).

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

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell EUR/USD.

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

• Support levels: 1.1710, 1.1700, 1.1670
• Resistance levels: 1.1765, 1.1800, 1.1845

If the price fixes below 1.1710, EUR/USD quotes are expected to fall further. The movement is tending to 1.1670-1.1650.

An alternative could be the growth of the EUR/USD currency pair to 1.1800-1.1830.

The GBP/USD currency pair

• Prev Open: 1.30582
• Open: 1.30496
• % chg. over the last day: -0.17
• Day’s range: 1.30171 – 1.30673
• 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have been declining. The British pound has updated local lows. The UK reported that the country’s GDP decreased by 20.4% (q/q) in the second quarter, which is the record reduction among the largest economies. At the moment, the local support and resistance levels are 1.3020 and 1.3065, respectively. The trading instrument has the potential for further decline. Positions should be opened from key levels.

We recommend paying attention to the news feed from the US.

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram is in the negative zone, but above the signal line, which gives a weak signal to sell GBP/USD.

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

• Support levels: 1.3020, 1.2980, 1.2950
• Resistance levels: 1.3065, 1.3100, 1.3130

If the price fixes below 1.3020, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2980-1.2950.

An alternative could be the growth of the GBP/USD currency pair to 1.3100-1.3130.

The USD/CAD currency pair

• Prev Open: 1.33508
• Open: 1.33010
• % chg. over the last day: -0.37
• Day’s range: 1.32906 – 1.33469
• 52 wk range: 1.2949 – 1.4668

USD/CAD quotes are in a sideways trend. There is no defined trend. At the moment, the local support and resistance levels are 1.3290 and 1.3345, respectively. The USD/CAD currency pair is tending to decline. We recommend paying attention to the dynamics of oil prices. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

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

The MACD histogram is near the 0 mark.

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

• Support levels: 1.3290, 1.3270, 1.3240
• Resistance levels: 1.3345, 1.3370, 1.3400

If the price fixes below 1.3290, USD/CAD quotes are expected to fall. The movement is tending to 1.3250-1.3230.

An alternative could be the growth of the USD/CAD currency pair to 1.3370-1.3400.

The USD/JPY currency pair shows a pronounced uptrend. The trading instrument has overcome and fixed above the key extremes. At the moment, the USD/JPY quotes are consolidating in the range of 106.45-106.80. We recommend paying attention to the dynamics of US government bonds yield. The greenback is tending to grow further against the yen. Positions should be opened from key levels.

The news feed on Japan’s economy is calm.

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

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

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

• Support levels: 106.45, 106.20, 105.80
• Resistance levels: 106.80, 107.30, 107.50

If the price fixes above the level of 106.80, further growth of USD/JPY quotes is expected. The movement is tending to 107.20-107.50.

An alternative could be a decline in the USD/JPY currency pair to 106.00-105.80.