The Analytical Overview of the Main Currency Pairs on 2020.10.07

The EUR/USD currency pair

• Prev Open: 1.17816
• Open: 1.17332
• % chg. over the last day: -0.37
• Day’s range: 1.17250 – 1.17614
• 52 wk range: 1.0637 – 1.2012

Yesterday, Donald Trump ordered to end negotiations in the US Congress on a new stimulus package. These events caused a sharp drop in demand for “risky” assets. EUR/USD quotes have updated local lows. The trading instrument found support at the 1.1725 level. The 1.1765 mark is already a “mirror” resistance. A further decline in the EUR/USD currency pair is possible. Today investors will be focused on the FOMC meeting minutes. We recommend paying attention to the comments by the regulator’s representatives. Positions should be opened from key levels.

• – Publication of the FOMC meeting minutes at 21:00 (GMT+3:00).

We also recommend paying attention to the speech by the ECB President.

Indicators do not give accurate signals: the price has crossed the 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 has reached the overbought zone, the %K line is above the %D line, which gives a weak signal to buy EUR/USD.

• Support levels: 1.1725, 1.1700, 1.1680
• Resistance levels: 1.1765, 1.1800, 1.1850

If the price fixes below 1.1725, further correction of EUR/USD quotes is expected. The movement is tending to 1.1690-1.1670.

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

The GBP/USD currency pair

• Prev Open: 1.29728
• Open: 1.28669
• % chg. over the last day: -0.72
• Day’s range: 1.28658 – 1.29295
• 52 wk range: 1.1409 – 1.3516

GBP/USD quotes have been declining. The British pound has updated local lows. At the moment, the key support and resistance levels are 1.2865 and 1.2935, respectively. Financial market participants expect the publication of the FOMC meeting minutes. We recommend following up-to-date information on the Brexit issue. The GBP/USD currency pair has the potential for further correction. Positions should be opened from key levels.

The news feed on the UK economy is calm.

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 overbought zone, the %K line is above the %D line, which gives a weak signal to buy GBP/USD.

• Support levels: 1.2865, 1.2830, 1.2800
• Resistance levels: 1.2935, 1.3000, 1.3050

If the price fixes below 1.2865, a further fall in the GBP/USD currency pair is expected. The movement is tending to the round level of 1.2800.

An alternative could be the growth of GBP/USD quotes to 1.2980-1.3020.

The USD/CAD currency pair

• Prev Open: 1.32587
• Open: 1.33047
• % chg. over the last day: +0.32
• Day’s range: 1.32872 – 1.33408
• 52 wk range: 1.2949 – 1.4669

Yesterday, there were aggressive purchases on the USD/CAD currency pair. The growth of quotes exceeded 75 points. The trading instrument has updated local highs. The loonie has recovered most of the losses. USD/CAD quotes are consolidating in the range of 1.3280-1.3310. We recommend paying attention to economic releases from Canada and the US. Positions should be opened from key levels.

At 17:00 (GMT+3:00), Ivey PMI will be published.

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

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy 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: 1.3280, 1.3245, 1.3200
• Resistance levels: 1.3310, 1.3340, 1.3355

If the price fixes below 1.3280, USD/CAD quotes are expected to fall. The movement is tending to 1.3250-1.3220.

An alternative could be the growth of the USD/CAD currency pair to 1.3340-1.3360.

The USD/JPY currency pair shows a positive trend. The trading instrument has overcome and fixed above the key extremes. The round level of 106.00 is the nearest resistance. The 105.80 mark is already a “mirror” support. Further growth of USD/JPY quotes is possible. Today, we recommend paying attention to the publication of the FOMC meeting minutes. 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, which gives a signal to buy USD/JPY.

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

• Support levels: 105.80, 105.55, 105.40
• Resistance levels: 106.00, 106.50

If the price fixes above the level of 106.00, further growth of USD/JPY quotes is expected. The movement is tending to 106.30-106.50.

An alternative could be a decline in the USD/JPY currency pair to 105.60-105.40.