The Analytical Overview of the Main Currency Pairs on 2020.10.26

The EUR/USD currency pair

• Prev Open: 1.18168
• Open: 1.18574
• % chg. over the last day: +0.36
• Day’s range: 1.18133 – 1.18574
• 52 wk range: 1.0637 – 1.2012

The EUR/USD currency pair has become stable. At the moment, quotes are consolidating. Investors are closely following the final stage of the election race between Donald Trump and Joe Biden, as well as new information concerning the stimulus package in the US. Local support and resistance levels are 1.1815 and 1.1845, respectively. Today, financial market participants will assess economic releases from Germany and the US. Positions should be opened from key levels.

• – German IFO business climate index at 11:00 (GMT+2:00);
• – New home sales in the US at 16:00 (GMT+2:00).

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

The MACD histogram is near the 0 mark. There are no signals at the moment.

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

• Support levels: 1.1815, 1.1790, 1.1760
• Resistance levels: 1.1845, 1.1865, 1.1880

If the price fixes below 1.1815, EUR/USD quotes are expected to fall. The movement is tending to 1.1790-1.1760.

An alternative could be the growth of the EUR/USD currency pair to 1.1870-1.1900.

The GBP/USD currency pair

• Prev Open: 1.30749
• Open: 1.30540
• % chg. over the last day: -0.31
• Day’s range: 1.29927 – 1.30578
• 52 wk range: 1.1409 – 1.3516

Sales prevail on the GBP/USD currency pair. Quotes set new local lows. At the moment, the British pound is testing the round level of 1.3000. The 1.3055 mark is the nearest resistance. The trading instrument has the potential for further correction. We recommend paying attention to the news feed from the US. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators do not give accurate signals: the price is consolidating near the 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 GBP/USD.

• Support levels: 1.3000, 1.2970, 1.2920
• Resistance levels: 1.3055, 1.3100, 1.3145

If the price fixes below the round level of 1.3000, further correction of the GBP/USD currency pair is expected. The movement is tending to 1.2960-1.2940.

An alternative could be the growth of GBP/USD quotes to the round level of 1.3100.

The USD/CAD currency pair

• Prev Open: 1.31319
• Open: 1.31255
• % chg. over the last day: -0.09
• Day’s range: 1.31243 – 1.31843
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have been growing. The trading instrument has updated local highs. The demand for greenback has partially resumed. Currently, the loonie is testing 1.3180. The level of 1.3150 is the nearest support. The USD/CAD currency pair has 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 has started growing, 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: 1.3150, 1.3125, 1.3110
• Resistance levels: 1.3180, 1.3205, 1.3235

If the price fixes above 1.3180, further growth in USD/CAD quotes is expected. The movement is tending to 1.3200-1.3230.

An alternative could be a decrease in the USD/CAD currency pair to 1.3125-1.3100.

There is an ambiguous technical pattern on the USD/JPY currency pair. The trading instrument is in a sideways trend. At the moment, the following local support and resistance levels can be distinguished: 104.65 and 104.95, respectively. Financial market participants expect additional drivers. 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 growing, 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/JPY.

• Support levels: 104.65, 104.55, 104.40
• Resistance levels: 104.95, 105.10, 105.30

If the price fixes below 104.65, USD/JPY quotes are expected to fall. The movement is tending to 104.40-104.10.

An alternative could be the growth of the USD/JPY currency pair to 105.20-105.40.