The Analytical Overview of the Main Currency Pairs on 2020.09.24

The EUR/USD currency pair

• Prev Open: 1.17060
• Open: 1.16601
• % chg. over the last day: -0.40
• Day’s range: 1.16444 – 1.16798
• 52 wk range: 1.0637 – 1.2012

The EUR/USD currency pair continues to show a negative trend. The trading instrument has updated its local lows again. The demand for safe assets is still quite high due to the renewed increase in the incidence of COVID-19 in many countries around the world. At the moment, EUR/USD quotes are consolidating in the range of 1.1645-1.1680. The single currency has the potential for further decline. Todayб we recommend paying attention to the news feed from the US. Positions should be opened from key levels.

• – German IFO business climate index at 11:00 (GMT+3:00);
• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – Speech by the Fed Chairman Jerome Powell at 17:00 (GMT+3:00);
• – New home sales in the US at 17:00 (GMT+3:00).

Indicators signal the power of sellers: the price has fixed below 50 MA and 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 is above the %D line, which gives a signal to buy EUR/USD.

• Support levels: 1.1645, 1.1600
• Resistance levels: 1.1680, 1.1715, 1.1750

If the price fixes below 1.1645, a further fall 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 1.1715-1.1740.

The GBP/USD currency pair

• Prev Open: 1.29806
• Open: 1.27141
• % chg. over the last day: -0.07
• Day’s range: 1.26903 – 1.27533
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair has become stable after a sharp drop since the beginning of this week. At the moment, the British pound is consolidating. Trading activity and volatility are still high. In the near future, a technical correction of GBP/USD quotes is possible. We expect important economic releases from the US. Positions should be opened from key levels.

The publication of important UK economic reports is not planned.

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 GBP/USD.

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

• Support levels: 1.2680, 1.2600
• Resistance levels: 1.2770, 1.2820, 1.2865

If the price fixes below 1.2680, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2620-1.2600.

An alternative could be the growth of the GBP/USD currency pair to 1.2820-1.2860.

The USD/CAD currency pair

• Prev Open: 1.33029
• Open: 1.33801
• % chg. over the last day: +0.63
• Day’s range: 1.33722 – 1.34146
• 52 wk range: 1.2949 – 1.4669

There is a steady uptrend on the USD/CAD currency pair. Since the beginning of this week, the growth of quotes has exceeded 200 points. The trading instrument has set new local highs. At the moment, the loonie is consolidating in the range of 1.3370-1.3415. USD/CAD quotes have the potential for further growth. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

The news feed on Canada’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 in the neutral zone, the %K line is below the %D line, which indicates a possible correction in USD/CAD quotes.

• Support levels: 1.3370, 1.3335, 1.3290
• Resistance levels: 1.3415, 1.3450

If the price fixes above 1.3415, further growth in USD/CAD quotes is expected. The movement is tending to 1.3450-1.3470.

An alternative could be a decrease in the USD/CAD currency pair to 1.3340-1.3320.

The USD/JPY currency pair

• Prev Open: 106.011
• Open: 105.355
• % chg. over the last day: +0.44
• Day’s range: 105.205 – 105.473
• 52 wk range: 101.19 – 112.41

The bullish sentiment prevails on the USD/JPY currency pair. The trading instrument has set new local highs. At the moment, USD/JPY quotes are consolidating in the range of 105.200-105.550. The trading instrument has the potential for further growth. 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 quite 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, but below the signal line, which gives a weak signal to buy USD/JPY.

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

• Support levels: 105.20, 104.85, 104.45
• Resistance levels: 105.55, 105.80, 106.20

If the price fixes above 105.55, further growth in USD/JPY quotes is expected. The movement is tending to the round level of 106.00.

An alternative could be a decline in the USD/JPY currency pair to 104.90-104.70.