The Analytical Overview of the Main Currency Pairs on 2020.10.12

The EUR/USD currency pair

• Prev Open: 1.17572
• Open: 1.18101
• % chg. over the last day: +0.56
• Day's range: 1.18058 – 1.18267
• 52 wk range: 1.0637 – 1.2012

The bullish sentiment still prevails on the EUR/USD currency pair. The trading instrument has set new local highs. The euro found resistance at 1.1830. The round level of 1.1800 is already a "mirror" support. Further growth of EUR/USD quotes is possible. Investors continue to monitor the campaigns of Donald Trump and Joe Biden, as well as the adoption of a new stimulus package for the US economy. We recommend opening positions from key levels.

Today, we recommend paying attention to the speech by the ECB President.

Indicators signal the power of buyers: the price has fixed above 50 MA and 200 MA.

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

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

• Support levels: 1.1800, 1.1780, 1.1755
• Resistance levels: 1.1830, 1.1860, 1.1900

If the price fixes above 1.1830, further growth of EUR/USD quotes is expected. The movement is tending to 1.1850-1.1880.

An alternative could be a decline in the EUR/USD currency pair to 1.1780-1.1750.

The GBP/USD currency pair

• Prev Open: 1.29113
• Open: 1.30228
• % chg. over the last day: -0.12
• Day's range: 1.30200 – 1.30595
• 52 wk range: 1.1409 – 1.3516

GBP/USD quotes show a positive trend. The British pound has overcome the $1.30 mark. At the moment, the trading instrument is consolidating in the range of 1.3000-1.3060. The demand for greenback is still quite low. At the same time, the correction of the GBP/USD currency pair is possible. Financial market participants continue to follow the Brexit negotiations. Positions should be opened from key levels.

We recommend paying attention to the speech by the Bank of England Governor.

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 neutral zone, the %K line is below the %D line, which indicates a possible correction of the GBP/USD currency pair.

• Support levels: 1.3020, 1.2990, 1.2965
• Resistance levels: 1.3060, 1.3100

If the price fixes above 1.3060, further growth of the GBP/USD currency pair is expected. The movement is tending to 1.3100-1.3120.

An alternative could be a drop in the GBP/USD quotes to 1.2990-1.2970.

The USD/CAD currency pair

• Prev Open: 1.31949
• Open: 1.31286
• % chg. over the last day: -0.58
• Day's range: 1.31166 – 1.31431
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair continues to show a pronounced downtrend. The trading instrument has updated its local lows again. At the moment, the loonie is consolidating in the range of 1.3110-1.3150. In the near future, a technical correction is possible. We recommend paying attention to the dynamics of "black gold" prices. Positions should be opened from key levels.

The news feed on Canada's 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, but above the signal line, which gives a weak signal to sell 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: 1.3110, 1.3050
• Resistance levels: 1.3150, 1.3185, 1.3225

If the price fixes below 1.3110, a further fall in USD/CAD quotes is expected. The movement is tending to 1.3070-1.3050.

An alternative could be the growth of the USD/CAD currency pair to 1.3185-1.3220.

The USD/JPY currency pair has been declining. The trading instrument has updated local lows. At the moment, USD/JPY quotes are consolidating in the range of 105.45-105.65. The demand for greenback remains at a fairly low level. Further strengthening of the yen against the US currency is possible. We recommend paying attention to the dynamics of 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 sellers: the price has fixed below 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 above the %D line, which gives a signal to buy USD/JPY.

• Support levels: 105.45, 105.25, 105.00
• Resistance levels: 105.65, 105.80, 105.95

If the price fixes above 105.45, a further fall in USD/JPY quotes is expected. The movement is tending to the round level of 105.00.

An alternative could be the growth of the USD/JPY currency pair to 105.80-106.00.

by JustMarkets, 2020.10.12

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.