The Analytical Overview of the Main Currency Pairs on 2020.10.22

The EUR/USD currency pair

• Prev Open: 1.18212
• Open: 1.18582
• % chg. over the last day: +0.34
• Day’s range: 1.18382 – 1.18669
• 52 wk range: 1.0637 – 1.2012

EUR/USD quotes have become stable after a significant rally the day before. The trading instrument has approached two-month highs. The greenback is still weak against currency majors before the US presidential election. According to the Fed’s Beige Book, most US federal districts showed weak or moderate economic growth from late August to early October. At the moment, the EUR/USD currency pair is consolidating in the range of 1.1840-1.1880. The euro has the potential for further growth. Positions should be opened from key levels.

• – Initial jobless claims in the US at 15:30 (GMT+3:00);
• – Existing home sales in the US at 17:00 (GMT+3:00).

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram has started growing again, which gives a signal to buy EUR/USD.

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

• Support levels: 1.1840, 1.1815, 1.1790
• Resistance levels: 1.1880, 1.1900, 1.1940

If the price fixes above 1.1880, further growth in EUR/USD quotes is expected. The movement is tending to 1.1910-1.1940.

An alternative could be a decline in the EUR/USD currency pair to the round level of 1.1800.

The GBP/USD currency pair

• Prev Open: 1.29318
• Open: 1.31538
• % chg. over the last day: +1.55
• Day’s range: 1.31170 – 1.31509
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair shows a pronounced uptrend. The British pound has overcome and fixed above $1.31. The demand for greenback is still quite low. London and Brussels plan to resume trade talks later this week. At the moment, GBP/USD quotes are consolidating in the range of 1.3120-1.3175. In the near future, a technical correction of the trading instrument is possible. Positions should be opened from key levels.

We recommend paying attention to the speech by the Bank of England Governor.

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 has started crossing the %D line. There are no signals at the moment.

• Support levels: 1.3120, 1.3080, 1.3040
• Resistance levels: 1.3175, 1.3200, 1.3250

If the price fixes above 1.3175, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.3200-1.3230.

An alternative could be a drop in GBP/USD quotes to 1.3080-1.3050.

The USD/CAD currency pair

• Prev Open: 1.31263
• Open: 1.31387
• % chg. over the last day: +0.16
• Day’s range: 1.31359 – 1.31773
• 52 wk range: 1.2949 – 1.4669

In the last sessions, trades on the USD/CAD currency pair are very active. At the same time, there is no defined trend. The loonie is currently consolidating. Investors expect additional drivers. Local support and resistance levels are 1.3135 and 1.3175, respectively. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

We recommend paying attention to economic releases from the US.

Indicators do not give accurate signals: the price has crossed the 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 gives a signal to sell USD/CAD.

• Support levels: 1.3135, 1.3105, 1.3080
• Resistance levels: 1.3175, 1.3205, 1.3250

If the price fixes below 1.3135, USD/CAD quotes are expected to fall. The movement is tending to 1.3100-1.3070.

An alternative could be the growth of the USD/CAD currency pair to 1.3200-1.3230.

The bearish sentiment is observed on the USD/JPY currency pair. The trading instrument has set new local lows. At the moment, USD/JPY quotes are consolidating. The key range is 104.40-104.75. The yen has the potential for further growth against the greenback. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

We expect economic reports from the US.

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 has crossed the %D line. There are no signals at the moment.

• Support levels: 104.40, 104.00
• Resistance levels: 104.75, 104.90, 105.05

If the price fixes below 104.40, a further fall in USD/JPY quotes is expected. The movement is tending to the round level of 104.00.

An alternative could be the growth of the USD/JPY currency pair to 105.00-105.20.