The Analytical Overview of the Main Currency Pairs on 2020.11.02

The EUR/USD currency pair

• Prev Open: 1.16717
• Open: 1.16471
• % chg. over the last day: -0.23
• Day’s range: 1.16224 – 1.16486
• 52 wk range: 1.0637 – 1.2012

The US dollar continues to strengthen against a basket of world currencies. The demand for risky assets is still low amid a rapid increase in the number of people infected with COVID-19, as well as ahead of the US presidential election, which will be held tomorrow. In the current trading week, traders will also assess the Fed meeting and the US labor market report for October. At the moment, EUR/USD quotes are consolidating in the range of 1.1625-1.1665. A further decline in the trading instrument is possible. Positions should be opened from key levels.

• – German manufacturing PMI at 10:55 (GMT+2:00);
• – ISM manufacturing PMI at 17:00 (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 has crossed the %D line. There are no signals at the moment.

• Support levels: 1.1625, 1.1600, 1.1550
• Resistance levels: 1.1665, 1.1700, 1.1725

If the price fixes below 1.1625, a further fall in EUR/USD quotes is expected. The movement is tending to 1.1600-1.1570.

An alternative could be the growth of the EUR/USD currency pair to 1.1700-1.1725.

The GBP/USD currency pair

• Prev Open: 1.29236
• Open: 1.29219
• % chg. over the last day: -0.42
• Day’s range: 1.28570 – 1.29394
• 52 wk range: 1.1409 – 1.3516

GBP/USD quotes continue to show a negative trend. The British pound set new local lows again. At the moment, the GBP/USD currency pair is testing the 1.2855 mark. The level of 1.2910 is already a “mirror” resistance. A further decline in the trading instrument is possible. Positions should be opened from key levels.

At 11:30 (GMT+2:00), the UK manufacturing PMI 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 located near the oversold zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 1.2855, 1.2800
• Resistance levels: 1.2910, 1.2960, 1.2995

If the price fixes below 1.2855, a further fall in GBP/USD quotes is expected. The movement is tending to the round level of 1.2800.

An alternative could be the growth of GBP/USD quotes to 1.2950-1.2980.

The USD/CAD currency pair

• Prev Open: 1.33226
• Open: 1.33128
• % chg. over the last day: -0.05
• Day’s range: 1.33114 – 1.33704
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes continue to consolidate. There is no defined trend. Local support and resistance levels are 1.3280 and 1.3345, respectively. Traders expect additional drivers. The loonie is still under pressure due to a sharp drop in oil prices. Today, we recommend paying attention to economic reports from the US. Positions should be opened from key levels.

The news feed on Canada’s economy is calm.

Indicators do not give accurate signals: the price is testing 50 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is in the neutral 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.

The USD/JPY currency pair has been growing. The trading instrument has updated local highs. At the moment, the local support and resistance levels are 104.70 and 105.00, respectively. Investors expect additional drivers. Today, we recommend paying attention to economic reports, as well as the dynamics of the 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 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: 104.70, 104.50, 104.20
• Resistance levels: 105.00, 105.25, 105.50

If the price fixes above 105.00, further growth of USD/JPY quotes is expected. The movement is tending to 105.25-105.50.

An alternative could be a decline in the USD/JPY currency pair to 104.50-104.30.