The Analytical Overview of the Main Currency Pairs on 2020.10.29

The EUR/USD currency pair

• Prev Open: 1.17869
• Open: 1.17467
• % chg. over the last day: -0.43
• Day’s range: 1.17250 – 1.17589
• 52 wk range: 1.0637 – 1.2012

Demand for risky assets is still low amid the rapid spread of the coronavirus pandemic. The EUR/USD currency pair has set new local lows. At the moment, quotes are consolidating in the range of 1.1720-1.1760. Investors have taken a wait-and-see attitude before today’s ECB meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level. We also recommend paying attention to economic releases from the US. Positions should be opened from key levels.

• – Report on US GDP at 14:30 (GMT+2:00);
• – Initial jobless claims in the US at 14:30 (GMT+2:00);
• – ECB interest rate decision at 14:45 (GMT+2:00);
• – Pending home sales in the US at 16:00 (GMT+2:00).

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram is in the negative zone, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which also gives a signal to sell EUR/USD.

• Support levels: 1.1720, 1.1700
• Resistance levels: 1.1760, 1.1785, 1.1800

If the price fixes below 1.1720, EUR/USD quotes are expected to fall further. The movement is tending to 1.1690-1.1670.

An alternative could be the growth of the EUR/USD currency pair to 1.1790-1.1810.

The GBP/USD currency pair

• Prev Open: 1.30421
• Open: 1.29848
• % chg. over the last day: -0.48
• Day’s range: 1.29809 – 1.30250
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair has become stable. At the moment, the British pound is consolidating. The trading instrument is testing local support and resistance levels: 1.2975 and 1.3025, respectively. Traders are looking for additional drivers. We recommend paying attention to the economic reports from the US. A further decline in the trading instrument is possible. 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 testing 50 MA and 100 MA.

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

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.

• Support levels: 1.2975, 1.2920, 1.2870
• Resistance levels: 1.3025, 1.3055, 1.3080

If the price fixes below 1.2975, a further drop in GBP/USD quotes is expected. The movement is tending to 1.2920-1.2900.

An alternative could be the growth of GBP/USD quotes to 1.3070-1.3100.

The USD/CAD currency pair

• Prev Open: 1.31859
• Open: 1.33185
• % chg. over the last day: +1.02
• Day’s range: 1.32779 – 1.33193
• 52 wk range: 1.2949 – 1.4669

There are aggressive purchases on the USD/CAD currency pair. During yesterday’s trading session, the Canadian dollar weakened against the US dollar by more than 130 points. The trading instrument has set new local highs. At the moment, the loonie is consolidating in the range of 1.3280-1.3330. The Canadian dollar is under pressure due to the negative dynamics of oil prices. Further growth of the USD/CAD currency pair is possible. Positions should be opened from key levels.

Yesterday, the Bank of Canada, as expected, kept the key marks of monetary policy at the same level.

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/CAD.

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

• Support levels: 1.3280, 1.3250, 1.3220
• Resistance levels: 1.3330, 1.3370, 1.3400

If the price fixes above 1.3330, further growth in USD/CAD quotes is expected. The movement is tending to 1.3360-1.3390.

An alternative could be a decline in the USD/CAD currency pair to 1.3250-1.3220.

The USD/JPY currency pair has become stable after the fall since the beginning of this week. At the moment, the trading instrument is consolidating. Local support and resistance levels are 104.15 and 104.55, respectively. In the near future, a technical correction is possible. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The Bank of Japan, as expected, kept the key marks of monetary policy at the same level.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

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

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

• Support levels: 104.15, 104.00, 103.70
• Resistance levels: 104.55, 104.75, 104.90

If the price fixes below 104.15, a further fall in USD/JPY quotes is expected. The movement is tending to 103.80-103.60.

An alternative could be the growth of the USD/JPY currency pair to 104.80-105.00.