The Analytical Overview of the Main Currency Pairs on 2020.08.20

The EUR/USD currency pair

• Prev Open: 1.19296
• Open: 1.18364
• % chg. over the last day: -0.78
• Day’s range: 1.18313 – 1.18535
• 52 wk range: 1.0637 – 1.1967

The greenback has strengthened significantly against its main competitors after the publication of the FOMC minutes. EUR/USD quotes have updated local lows. Fed officials note high uncertainty concerning the prospects for the country’s economy due to the coronavirus pandemic. Representatives of the Central Bank believe that the American economy will need additional financial stimulus, but the deadline is still undefined. At the moment, the key range on the EUR/USD currency pair is 1.1825-1.1880. The US dollar has the potential for further growth. Today, investors will assess the ECB account of monetary policy meeting. Positions should be opened from key levels.

• – Publication of the ECB account of monetary policy meeting at 14:30 (GMT+3:00);
• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).

Indicators signal the power of sellers: the price has fixed below 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: 1.1825, 1.1790, 1.1755
• Resistance levels: 1.1880, 1.1920, 1.1965

If the price fixes below 1.1825, EUR/USD quotes are expected to fall further. The movement is tending to 1.1790-1.1760.

An alternative could be the growth of the EUR/USD currency pair to 1.1920-1.1960.

The GBP/USD currency pair

• Prev Open: 1.32299
• Open: 1.30896
• % chg. over the last day: -1.04
• Day’s range: 1.30643 – 1.31194
• 52 wk range: 1.1409 – 1.3516

There are aggressive sales on the GBP/USD currency pair. During yesterday’s and today’s trading sessions, the drop in quotes exceeded 160 points. The British pound has set new local lows. At the moment, the trading instrument is consolidating in the range of 1.3065-1.3120. The demand for greenback is still quite high. GBP/USD quotes have the potential for further decline. Positions should be opened from key levels.

The news feed on the UK economy is calm today.

Indicators point to the power of sellers: the price has fixed below 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: 1.3065, 1.3045, 1.3010
• Resistance levels: 1.3120, 1.3160

If the price fixes below 1.3065, a further drop in GBP/USD quotes is expected. The movement is tending to 1.3020-1.3000.

An alternative could be the growth of the GBP/USD currency pair to 1.3150-1.3180.

The USD/CAD currency pair

• Prev Open: 1.31622
• Open: 1.32138
• % chg. over the last day: +0.35
• Day’s range: 1.32029 – 1.32323
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair has been growing. The trading instrument has updated local highs. At the moment, the loonie is consolidating in the range of 1.3185-1.3230. The demand for greenback remains at a high level after the publication of the FOMC minutes. USD/CAD quotes have the potential for further growth. Today, we recommend paying attention to economic releases from the US, as well as 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: the price has crossed the 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 has crossed the %D line. There are no signals at the moment.

• Support levels: 1.3185, 1.3140, 1.3100
• Resistance levels: 1.3230, 1.3270, 1.3315

If the price fixes above 1.3230, USD/CAD purchases should be considered. The movement is tending to 1.3270-1.3300.

An alternative could be a decrease in the USD/CAD currency pair to 1.3150-1.3120.

There is the bullish sentiment on the USD/JPY currency pair. The trading instrument has updated local highs. At the moment, USD/JPY quotes are testing the resistance at 106.20. The 105.75 level is the nearest support. The technical pattern signals further growth in the USD/JPY currency pair. 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 calm.

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

• Support levels: 105.75, 105.60, 105.15
• Resistance levels: 106.20, 106.60, 107.00

If the price fixes above 106.20, further growth in USD/JPY quotes is expected. The movement is tending to 106.60-107.00.

An alternative could be a decline in the USD/JPY currency pair to 105.50-105.30.