The Analytical Overview of the Main Currency Pairs on 2020.10.30

The EUR/USD currency pair

• Prev Open: 1.17467
• Open: 1.16717
• % chg. over the last day: -0.60
• Day’s range: 1.16649 – 1.16945
• 52 wk range: 1.0637 – 1.2012

The greenback has continued its growth against the basket of world currencies. EUR/USD quotes have updated local lows. The US currency was supported by an optimistic report on US GDP. The ECB, as expected, kept interest rates at the same level. At the same time, the regulator signaled the introduction of additional financial incentives by the end of the year to combat the impact of COVID-19. At the moment, the EUR/USD currency pair is consolidating in the range of 1.1650-1.1695. We expect economic releases from Germany, the Eurozone and the US. Positions should be opened from key levels.

• – Data on the GDP of Germany at 11:00 (GMT+2:00);
• – Eurozone consumer price index at 12:00 (GMT+2:00);
• – Eurozone GDP report at 12:00 (GMT+2:00);
• – Personal spending in the US at 14:30 (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: 1.1650, 1.1600
• Resistance levels: 1.1695, 1.1725, 1.1760

If the price fixes below 1.1650, a further fall in EUR/USD quotes is expected. The movement is tending to the round level of 1.1600.

An alternative could be the growth of the EUR/USD currency pair to 1.1725-1.1760.

The GBP/USD currency pair

• Prev Open: 1.29848
• Open: 1.29236
• % chg. over the last day: -0.42
• Day’s range: 1.28987 – 1.29392
• 52 wk range: 1.1409 – 1.3516

Sales prevail on the GBP/USD currency pair. The British pound has updated its local lows again. At the moment, GBP/USD quotes are consolidating. The trading instrument is testing the following support and resistance levels: 1.2885 and 1.2960, respectively. A further decline in the GBP/USD currency pair is possible. Positions should be opened from key levels.

The news feed on the UK 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 located near the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 1.2885, 1.2850, 1.2800
• Resistance levels: 1.2960, 1.2995, 1.3025

If the price fixes below 1.2885, a further fall in GBP/USD quotes is expected. The movement is tending to 1.2850-1.2830.

An alternative could be the growth of GBP/USD quotes to 1.3000-1.3020.

The USD/CAD currency pair

• Prev Open: 1.33185
• Open: 1.33226
• % chg. over the last day: +0.03
• Day’s range: 1.32941 – 1.33458
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have become stable after a prolonged rally. At the moment, the loonie is consolidating in the range of 1.3280-1.3345. Traders expect additional drivers. In the near future, a technical correction of the trading instrument is possible. Today, Canada’s GDP report will be the key event. We recommend paying attention to the dynamics of “black gold” prices. Positions should be opened from key levels.

At 14:30 (GMT+2:00), Canada’s GDP data will be published.

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

• Support levels: 1.3280, 1.3250, 1.3220
• Resistance levels: 1.3345, 1.3390

If the price fixes above 1.3345, further growth in USD/CAD quotes is expected. The movement is tending to 1.3390-1.3420.

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

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 key support and resistance levels can be distinguished: 104.05 and 104.45, respectively. The demand for safe assets is still high. We do not exclude a further decline in USD/JPY quotes. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

Japan published optimistic industrial production data for September.

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

The MACD histogram has started declining, which indicated 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/JPY.

• Support levels: 104.05, 103.70, 103.50
• Resistance levels: 104.45, 104.70, 104.90

If the price fixes below 104.05, a further drop in USD/JPY quotes is expected. The movement is tending to 103.70-103.50.

An alternative could be the growth of the USD/JPY currency pair to 104.70-104.90.