The Analytical Overview of the Main Currency Pairs on 2020.09.02

The EUR/USD currency pair

• Prev Open: 1.19401
• Open: 1.19112
• % chg. over the last day: -0.22
• Day's range: 1.18751 – 1.19288
• 52 wk range: 1.0637 – 1.2012

The US dollar has become stable against a basket of world currencies. Investors have started partially fixing positions on the greenback after a prolonged fall. EUR/USD quotes have kept the round level of 1.2000 and have been declining. The trading instrument has updated local lows. At the moment, the single currency is consolidating in the range of 1.1870-1.1920. Further correction of the EUR/USD quotes is possible. We expect important economic releases from the US. We recommend opening positions from key levels.

• – ADP nonfarm employment change at 15:15 (GMT+3:00);
• – Fed's "Beige Book" at 21:00 (GMT+3:00).

We also recommend paying attention to the speeches by the FOMC representatives.

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

The MACD histogram is in the negative zone, which indicates the correction of the EUR/USD currency pair.

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

• Support levels: 1.1870, 1.1845, 1.1810
• Resistance levels: 1.1920, 1.1960, 1.2000

If the price fixes below 1.1870, further correction of EUR/USD quotes is expected. The movement is tending to 1.1840-1.1810.

An alternative could be the growth of the EUR/USD currency pair to 1.1950-1.1980.

The GBP/USD currency pair

• Prev Open: 1.33643
• Open: 1.33848
• % chg. over the last day: +0.09
• Day's range: 1.33255 – 1.34023
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair has been declining. The British pound has updated local lows. At the moment, the following key support and resistance levels can be distinguished: 1.3310 and 1.3400, respectively. GBP/USD quotes have the potential for further correction. Financial market participants expect US economic reports. Positions should be opened from key levels.

The news feed on the UK economy is calm.

Indicators do not give accurate signals: the price has fixed between 50 MA and 100 MA.

The MACD histogram has been declining, which signals a further correction of the GBP/USD currency pair.

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

• Support levels: 1.3310, 1.3250, 1.3170
• Resistance levels: 1.3400, 1.3480

If the price fixes below 1.3310, GBP/USD quotes are expected to correct. The movement is tending to 1.3250-1.3220.

An alternative could be the growth of the GBP/USD currency pair to 1.3460-1.3490.

The USD/CAD currency pair

• Prev Open: 1.30403
• Open: 1.30608
• % chg. over the last day: +0.13
• Day's range: 1.30531 – 1.30840
• 52 wk range: 1.2949 – 1.4669

USD/CAD quotes have moved away from local lows. Financial market participants have started partially fixing positions on the greenback. At the moment, the loonie is consolidating in the range of 1.3045-1.3085. The trading instrument has the potential for further recovery. Today, we recommend paying attention to the dynamics of "black gold" prices, as well as economic releases 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 has fixed between 50 MA and 100 MA.

The MACD histogram is in the positive zone, which indicates the bullish 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: 1.3045, 1.2995
• Resistance levels: 1.3085, 1.3120, 1.3140

If the price fixes above 1.3085, further correction of USD/CAD quotes is expected. The movement is tending to 1.3120-1.3140.

An alternative may be a decline in the USD/CAD currency pair to 1.3000-1.2990.

The USD/JPY currency pair is in a sideways trend. There is no defined trend. USD/JPY quotes are testing local support and resistance levels: 105.80 and 106.15, respectively. The trading instrument is tending to recover. Today, we recommend paying attention to economic releases, as well as the dynamics of US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is calm.

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

The MACD histogram is in the positive zone, which indicates the bullish 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: 105.80, 105.60, 105.25
• Resistance levels: 106.15, 106.40, 106.55

If the price fixes above 106.15, further growth in USD/JPY quotes is expected. The movement is tending to 106.50-106.70.

An alternative could be a decline in the USD/JPY currency pair to 105.50-105.30.

by JustMarkets, 2020.09.02

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.