The Analytical Overview of the Main Currency Pairs on 2020.08.28

The EUR/USD currency pair

• Prev Open: 1.18285
• Open: 1.18198
• % chg. over the last day: -0.07
• Day’s range: 1.18110 – 1.18998
• 52 wk range: 1.0637 – 1.1967

The greenback has been declining against its main competitors after the speech by the Fed Chairman. Jerome Powell said that the Central Bank had approved a new monetary policy strategy, allowing inflation in the country to exceed the target of 2% in certain periods. At the moment, EUR/USD quotes are testing the round level of 1.1900. The 1.1845 mark is already a “mirror” support. Further growth of the trading instrument is possible. We recommend opening positions from key levels.

• – Personal spending in the US at 15:30 (GMT+3:00).

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

The MACD histogram is in the positive zone.

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

• Support levels: 1.1845, 1.1785, 1.1755
• Resistance levels: 1.1900, 1.1925, 1.1960

If the price fixes above 1.1900, further growth of EUR/USD quotes is expected. The movement is tending to 1.1930-1.1960.

An alternative could be a decline in the EUR/USD currency pair to 1.1800-1.1780.

The GBP/USD currency pair

• Prev Open: 1.31988
• Open: 1.32020
• % chg. over the last day: -0.08
• Day’s range: 1.31862 – 1.32899
• 52 wk range: 1.1409 – 1.3516

Purchases still prevail on the GBP/USD currency pair. The British pound has set new local highs. At the moment, GBP/USD quotes are testing the resistance level of 1.3290. The 1.3250 mark is already a “mirror” support. The demand for the US currency has weakened after the speech by the Fed Chairman. The trading instrument has the potential for further growth. Positions should be opened from key levels.

Today, we recommend paying attention to the speech by the Governor of the Bank of England.

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

The MACD histogram is in the positive zone and above the signal line, which gives a strong signal to buy GBP/USD.

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

• Support levels: 1.3250, 1.3230, 1.3180
• Resistance levels: 1.3290, 1.3340

If the price fixes above 1.3290, further growth in GBP/USD quotes is expected. The movement is tending to 1.3330-1.3350.

An alternative may be a decline in the GBP/USD currency pair to 1.3200-1.3170.

The USD/CAD currency pair

• Prev Open: 1.31413
• Open: 1.31188
• % chg. over the last day: -0.12
• Day’s range: 1.30806 – 1.31326
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have been declining after a prolonged consolidation. The trading instrument has overcome and fixed below key lows. The loonie is currently testing 1.3080. The level of 1.3135 is already a “mirror” resistance. The USD/CAD currency pair has the potential for further decline. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), Canada’s GDP report will be published.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone and below the signal line, which gives a strong signal to sell USD/CAD.

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

• Support levels: 1.3080, 1.3050, 1.3020
• Resistance levels: 1.3135, 1.3160, 1.3200

If the price fixes below 1.3080, USD/CAD sales should be considered. The movement is tending to 1.3050-1.3030.

An alternative could be the growth of the USD/CAD currency pair to 1.3160-1.3190.

There are aggressive sales on the USD/JPY currency pair. Since the beginning of the Asian trading session, the quotes have dropped by more than 90 points. At the moment, the local support and resistance levels are 105.90 and 106.30, respectively. The trading instrument has the potential for further decline. Today, Japan’s Prime Minister Shinzo Abe plans to announce his resignation for reasons of ill health. We recommend following up-to-date information on this issue. Positions should be opened from key levels.

The publication of important economic releases from Japan is not planned.

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 oversold zone, the %K line is below the %D line, which gives a weak signal to sell USD/JPY.

• Support levels: 105.90, 105.70, 105.45
• Resistance levels: 106.30, 106.55, 106.90

If the price fixes below 105.90, a further fall in USD/JPY quotes is expected. The movement is tending to 105.60-105.40.

An alternative could be the growth of the USD/JPY currency pair to 106.55-106.80.