The Analytical Overview of the Main Currency Pairs on 2020.01.22

The EUR/USD currency pair

• Prev Open: 1.10939
• Open: 1.10830
• % chg. over the last day: -0.09
• Day's range: 1.10773 - 1.10869
• 52 wk range: 1.0879 - 1.1572

Since the beginning of this week, trading on the EUR/USD currency pair has been very active. At the same time, there is no defined trend. At the moment, EUR/USD quotes are testing local support of 1.10800. Round level 1.11000 is the nearest resistance. Investors expect additional drivers. The trading instrument can decline further. We recommend opening positions from key levels.

At 17:00 (GMT+2:00) the US will publish data on existing home sales.

The price is fixed below 50 MA and 100 MA, which signals the strength of the sellers.

The MACD histogram has moved to the negative zone, which indicates a bearish sentiment.

The stochastic oscillator is in the neutral zone, the %K line is above the %D line, which gives a signal to buy EUR/USD.

• Support levels: 1.10800, 1.10500
• Resistance levels: 1.11000, 1.11200, 1.11450

If the price fixes below 1.10800, further decline of EUR/USD quotes is expected. Expect movement toward 1.10500-1.10300.

Alternatively, the EUR/USD currency pair may recover to 1.11200-1.11400.

The GBP/USD currency pair

• Prev Open: 1.30076
• Open: 1.30450
• % chg. over the last day: +0.27
• Day's range: 1.30347 - 1.30614
• 52 wk range: 1.1959 - 1.3516

The GBP/USD currency pair has moved up. The trading instrument has updated its local highs. Sterling was supported by a positive report on the UK labor market. At the moment GBP/USD quotes are consolidating. The key range is 1.30350-1.30750. The technical picture signals about further correction of GBP/USD currency pair. Today we recommend you to pay attention to the economic releases from the USA. Positions should be opened from key levels.

The news background on the UK economy is quite calm.

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

The MACD histogram is in the positive zone, which indicates the growth of GBP/USD quotes.

The stochastic oscillator is in the neutral zone, the %K line is above the %D line, which indicates a bullish mood.

• Support levels: 1.30350, 1.30000, 1.29600
• Resistance levels: 1.30750, 1.31000, 1.31450

If the price fixes above 1.30750, expect further growth of GBP/USD to 1.31000-1.31400.

Alternatively, the GBP/USD currency pair may decline to 1.30100-1.29800.

The USD/CAD currency pair

• Prev Open: 1.30474
• Open: 1.30712
• % chg. over the last day: +0.20
• Day's range: 1.30712 – 1.30918
• 52 wk range: 1.2949 – 1.3566

USD/CAD quotes have started to recover. The trading instrument has updated its local highs. Currently, the Moon is consolidating in the range of 1.30700-1.30900. Financial markets participants took a waiting position before the Bank of Canada meeting. It is expected that the regulator will leave the main monetary policy parameters at the same level. We also recommend to pay attention to the dynamics of oil prices. Positions should be opened from key levels.

The Economic News Feed for 22.01.2020:

• - Data on inflation in Canada – 15:30 (GMT+2:00);
• - Bank of Canada key interest rate decision – 17:00 (GMT+2:00).

The indicators signal the strength of buyers: the price has fixed above 50 MA and 100 MA.

MACD histogram is in the positive zone, which gives a signal to buy USD/CAD.

The stochastic oscillator is in the neutral zone, the %K line is below the %D line, which indicates a bearish sentiment.

• Support levels: 1.30700, 1.30500, 1.30350
• Resistance levels: 1.30900, 1.31000, 1.31200

If the price fixes above 1.30900, expect further growth toward 1.31200-1.31400.

Alternatively, the quotes could descend toward 1.30500-1.30300.

The USD/JPY currency pair

• Prev Open: 110.176
• Open: 109.848
• % chg. over the last day: -0.25
• Day's range: 109.827 – 110.096
• 52 wk range: 104.45 – 113.53

The USD/JPY currency pair has an ambiguous technical picture. The trading instrument is being consolidated. USD/JPY quotes are testing local support and resistance levels: 109.800 and 110.100, respectively. In the nearest future correction of USD/JPY currency pair after the prolonged growth is not excluded. We recommend you to pay attention to the US government bond yield dynamics. Positions should be opened from key levels.

The Economic News Feed for 22.01.2020 is calm.

Indicators do not give an accurate signal: 50 MA crossed 100 MA.

MACD histogram is near the 0 mark.

The stochastic oscillator is located in the neutral zone, the %K line has crossed the %D line. No signals at the moment.

• Support levels: 109.800, 109.600, 109.350
• Resistance levels: 110.100, 110.300, 110.600

If the price fixes below 109.800, USD/JPY quotes are expected to correct. Potential movement towards 109.500-109.300.

Alternative is the growth of USD/JPY pair to 110.400-110.600.

by JustMarkets, 2020.01.22

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.