The Analytical Overview of the Main Currency Pairs on 2020.09.23

The EUR/USD currency pair

• Prev Open: 1.17617
• Open: 1.17057
• % chg. over the last day: +0.07
• Day’s range: 1.18564 – 1.18680
• 52 wk range: 1.0637 – 1.2012

During yesterday’s and today’s trading sessions, EUR/USD quotes are declining. The US dollar is strengthening after the United States House of Representatives has approved a government funding bill that will avoid a shutdown before the presidential election. Yesterday, the Fed Chairman Jerome Powell gave a speech at the Financial Services Committee of the US House of Representatives. According to him, the US economy will recover faster from the crisis with the simultaneous implementation of fiscal and monetary stimulus measures. At the moment, the key support is the level of 1.1670, the key resistance level is 1.1715. We recommend opening positions from these levels.

• – German manufacturing PMI at 10:30 (GMT+3:00);
• – Manufacturing PMI in the Eurozone at 11:00 (GMT+3:00);
• – US crude oil inventories at 17:30 (GMT+3:00).

We also recommend paying attention to the speech by the Fed Chairman.

Indicators point to the power of sellers: the price is being traded below 50 MA and 100 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 gives a signal to buy EUR/USD.

• Support levels: 1.1670, 1.1600
• Resistance levels: 1.1715, 1.1760, 1.1800

If the price fixes below 1.1670, further decline in EUR/USD quotes is expected. The movement is tending to the round level of 1.1600.

An alternative could be the growth of the EUR/USD currency pair to 1.1750-1.1760.

The GBP/USD currency pair

• Prev Open: 1.28043
• Open: 1.27258
• % chg. over the last day: -0.65
• Day’s range: 1.28971 – 1.29640
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair has been declining during yesterday’s and today’s trading sessions. Yesterday, British Prime Minister Boris Johnson announced the introduction of restrictive measures in England to combat COVID-19, in particular, opening hours for bars and restaurants will be limited, as well as the maximum number of people getting together. However, Johnson noted that a second quarantine is not being introduced in the country, that everyone is not obliged to stay at home, schools and universities will continue to work. At the moment, the key support and resistance levels are 1.2680 and 1.2740, respectively. Positions should be opened from these levels.

• – Composite index at 11:30 (GMT+3:00);
• – Manufacturing PMI at 11:30 (GMT+3:00);
• – Services PMI at 11:30 (GMT+3:00).

Indicators point to the power of sellers: the price is being traded below 50 MA and 100 MA.

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

Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no accurate signals.

• Support levels: 1.2870, 1.2810, 1.2760
• Resistance levels: 1.2930, 1.2985, 1.3040

If the price fixes below 1.2680, a further decline in GBP/USD quotes is expected. The movement is tending to 1.2650-1.2630.

If the price fixes above the resistance level of 1.2740, GBP/USD quotes are expected to grow to the round level of 1.2800.

The USD/CAD currency pair

• Prev Open: 1.33036
• Open: 1.33024
• % chg. over the last day: -0.04
• Day’s range: 1.32124 – 1.32241
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair is in a sideways trend. There is no defined trend. At the moment, the key support and resistance levels are 1.3300 and 1.3350, respectively. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

Today, the news feed in Canada is calm.

Indicators point to the bullish sentiment: the price is being traded 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 USD/CAD.

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: 1.3300, 1.3240, 1.3190
• Resistance levels: 1.3350, 1.3410

If the price fixes above 1.3350, USD/CAD quotes are expected to grow. The movement is tending to 1.3400-1.3410.

An alternative could be a decline in the USD/CAD currency pair to 1.3260-1.3240.

During yesterday’s trading session, the USD/JPY currency pair increased. The quotes have risen by more than 60 points. At the moment, the local support and resistance levels are 104.80 and 105.20, respectively. Further growth of the trading instrument is possible. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Investors expect a report on the monetary policy of the Bank of Japan.

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

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

Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

• Support levels: 104.80, 104.35, 104.00
• Resistance levels: 105.20, 105.70, 106.10

If the price fixes above the level of 105.70, further growth in USD/JPY quotes is expected. The movement is tending to 106.10-106.30.

An alternative could be the correction of the USD/JPY currency pair to the round level of 104.00.