The Analytical Overview of the Main Currency Pairs on 2020.10.16

The EUR/USD currency pair

• Prev Open: 1.17453
• Open: 1.17076
• % chg. over the last day: -0.34
• Day’s range: 1.16941 – 1.17156
• 52 wk range: 1.0637 – 1.2012

The greenback has been growing against its main competitors. The demand for safe assets has grown due to a sharp increase in the number of COVID-19 cases in the US and Europe. Several EU countries have introduced new restrictive measures. Investors also continue to follow the discussion on new economic stimulus in the US. The EUR/USD currency pair has updated local lows. At the moment, the trading instrument is consolidating in the range of 1.1690-1.1720. Further decline in the single currency is possible. We recommend opening positions from key levels.

• – Data on inflation in the Eurozone at 12:00 (GMT+3:00);
• – Report on retail sales in the US at 15:30 (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, 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 indicates the bullish sentiment.

• Support levels: 1.1690, 1.1650
• Resistance levels: 1.1720, 1.1735, 1.1765

If the price fixes below 1.1690, EUR/USD quotes are expected to fall further. The movement is tending to 1.1650-1.1630.

An alternative could be the growth of the EUR/USD currency pair to 1.1745-1.1760.

The GBP/USD currency pair

• Prev Open: 1.30069
• Open: 1.28972
• % chg. over the last day: -0.75
• Day’s range: 1.28832 – 1.29415
• 52 wk range: 1.1409 – 1.3516

Sales prevail on the GBP/USD currency pair. During yesterday’s trading session, the British pound lost more than 100 points. The trading instrument has updated local lows. At the moment, GBP/USD quotes are consolidating in the range of 1.2885-1.2940. The demand for greenback is still high. A further decline in the GBP/USD currency pair is possible. Financial market participants expect up-to-date information on the Brexit process. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators signal the power of sellers: the price has fixed 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 GBP/USD.

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

• Support levels: 1.2885, 1.2850, 1.2800
• Resistance levels: 1.2940, 1.2975, 1.3005

If the price fixes below 1.2885, a further decline in the GBP/USD currency pair is expected. The movement is tending to 1.2850-1.2820.

An alternative could be the growth of GBP/USD quotes to 1.2975-1.3000.

The USD/CAD currency pair

• Prev Open: 1.31421
• Open: 1.32247
• % chg. over the last day: +0.56
• Day’s range: 1.32048 – 1.32375
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair has been growing. During yesterday’s trading session, the growth of quotes exceeded 80 points. The trading instrument has updated local highs. At the moment, the loonie is consolidating in the range of 1.3200-1.3250. The demand for the US dollar has grown significantly. Further growth of USD/CAD quotes is possible. 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, but below the signal line, which gives a weak signal to buy USD/CAD.

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

• Support levels: 1.3200, 1.3170, 1.3125
• Resistance levels: 1.3250, 1.3285, 1.3335

If the price fixes above 1.3250, further growth in USD/CAD quotes is expected. The movement is tending to 1.3280-1.3300.

An alternative could be a decline of the USD/CAD currency pair to 1.3170-1.3150.

The USD/JPY currency pair is in a sideways trend. There is no defined trend. Quotes are testing local support and resistance levels: 105.20 and 105.50, respectively. The trading instrument has the potential for further decline. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed for Japan’s economy is calm.

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

The MACD histogram has started declining, 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: 105.20, 105.05, 104.70
• Resistance levels: 105.50, 105.65, 105.80

If the price fixes below 105.20, a further fall in USD/JPY quotes is expected. The movement is tending to 104.80-104.60.

An alternative could be the growth of the USD/JPY currency pair to 105.70-105.90.