The Analytical Overview of the Main Currency Pairs on 2020.10.21

The EUR/USD currency pair

• Prev Open: 1.17652
• Open: 1.18212
• % chg. over the last day: +0.47
• Day’s range: 1.18206 – 1.18590
• 52 wk range: 1.0637 – 1.2012

The greenback has been declining against its main competitors. During yesterday’s and today’s trading sessions, the growth of EUR/USD quotes exceeded 90 points. The trading instrument has updated monthly highs. Financial market participants continue to follow the news about the new economic stimulus package in the US. Yesterday, Speaker of the United States House of Representatives Nancy Pelosi reported on progress in negotiations with the White House. At the moment, the single currency is testing the 1.1860 mark. The level of 1.1830 is already a “mirror” support. Further growth of EUR/USD quotes is possible. Positions should be opened from key levels.

At 21:00 (GMT+3:00), the Fed’s “Beige Book” will be published.

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

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 EUR/USD.

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

• Support levels: 1.1830, 1.1815, 1.1790
• Resistance levels: 1.1860, 1.1900

If the price fixes above 1.1860, further growth of EUR/USD quotes is expected. The movement is tending to 1.1900-1.1920.

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

The GBP/USD currency pair

• Prev Open: 1.29375
• Open: 1.29318
• % chg. over the last day: -0.02
• Day’s range: 1.29308 – 1.30647
• 52 wk range: 1.1409 – 1.3516

There are aggressive purchases on the GBP/USD currency pair. Since the beginning of the Asian trading session, the growth of quotes has exceeded 130 points. The British pound has updated local highs. At the moment, the following key support and resistance levels can be distinguished: 1.3025 and 1.3075, respectively. The trading instrument has the potential for further growth. We recommend following up-to-date information on the Brexit issue. Positions should be opened from key levels.

In September, the UK CPI counted to +0.5% (YoY), meeting market expectations.

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

• Support levels: 1.3025, 1.3005, 1.2970
• Resistance levels: 1.3075, 1.3100, 1.3130

If the price fixes above 1.3075, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.3100-1.3130.

An alternative could be a drop in GBP/USD quotes to 1.3000-1.2970.

The USD/CAD currency pair

• Prev Open: 1.31920
• Open: 1.31263
• % chg. over the last day: -0.52
• Day’s range: 1.30810 – 1.31288
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes show a negative trend. The trading instrument has set new local lows. The USD/CAD currency pair found support at 1.3085. The 1.3130 mark is already a “mirror” resistance. The loonie has the potential for further growth against the US dollar. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

At 15:30 (GMT+3:00), inflation and retail sales reports in Canada 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, 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 USD/CAD.

• Support levels: 1.3085, 1.3050, 1.3020
• Resistance levels: 1.3130, 1.3150, 1.3170

If the price fixes below 1.3085, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3050-1.3020.

An alternative could be the growth of the USD/CAD currency pair to 1.3160-1.3180.

There are aggressive sales on the USD/JPY currency pair. The trading instrument has updated monthly lows. At the moment, USD/JPY quotes are testing the 104.90 mark. The level of 105.20 is already a “mirror” resistance. Further decline in the USD/JPY currency pair is possible. 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 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 oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 104.90, 104.50
• Resistance levels: 105.05, 105.20, 105.45

If the price fixes below 104.90, a further drop in USD/JPY quotes is expected. The movement is tending to 104.60-104.40.

An alternative could be the growth of the USD/JPY currency pair to 105.40-105.60.