The Analytical Overview of the Main Currency Pairs on 2020.10.28

The EUR/USD currency pair

• Prev Open: 1.18085
• Open: 1.17869
• % chg. over the last day: -0.11
• Day's range: 1.17431 – 1.17880
• 52 wk range: 1.0637 – 1.2012

EUR/USD quotes have been declining. The trading instrument has updated local lows. The demand for risky assets has weakened amid the rapid spread of the COVID-19 epidemic and the upcoming US presidential election. Investors expect the ECB meeting on October 29th. At the moment, the EUR/USD currency pair is consolidating in the range of 1.1740-1.1785. The euro has the potential for further decline. We recommend opening positions from key levels.

Today, the news feed is quite 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 in the neutral zone, the %K line has crossed the %D line. There are no signals at the moment.

• Support levels: 1.1740, 1.1700
• Resistance levels: 1.1785, 1.1800, 1.1840

If the price fixes below 1.1740, a further fall in EUR/USD quotes is expected. The movement is tending to the round level of 1.1700.

An alternative could be the growth of the EUR/USD currency pair to 1.1820-1.1840.

The GBP/USD currency pair

• Prev Open: 1.30192
• Open: 1.30421
• % chg. over the last day: +0.15
• Day's range: 1.29633 – 1.30634
• 52 wk range: 1.1409 – 1.3516

Sales prevail on the GBP/USD currency pair. The British pound has updated local lows. At the moment, GBP/USD quotes are testing the level of 1.2965. The 1.3015 mark is already a “mirror” resistance. The demand for greenback has strengthened. The trading instrument has the potential for further decline. Positions should be opened from key levels.

The publication of important UK economic releases is not planned.

Indicators signal the power of sellers: the price has fixed below 50 MA and 100 MA.

The MACD histogram has started declining, which indicates the bearish sentiment.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which gives a signal to sell GBP/USD.

• Support levels: 1.2965, 1.2920, 1.2870
• Resistance levels: 1.3015, 1.3055, 1.3080

If the price fixes below 1.2965, a further drop in GBP/USD quotes is expected. The movement is tending to the round level of 1.2900.

An alternative could be the growth of GBP/USD quotes to 1.3050-1.3080.

The USD/CAD currency pair

• Prev Open: 1.32078
• Open: 1.31859
• % chg. over the last day: -0.17
• Day's range: 1.31792 – 1.32446
• 52 wk range: 1.2949 – 1.4669

The USD/CAD currency pair has been growing again. Quotes have updated local highs. Currently, the loonie is consolidating in the range of 1.3220-1.3245. The Canadian dollar is under pressure due to the negative dynamics of oil prices. Investors have taken a wait-and-see attitude before today's Bank of Canada meeting. Experts agree that the regulator will keep the key marks of monetary policy unchanged. Positions should be opened from key levels.

At 16:00 (GMT+2:00), the Bank of Canada will announce its decision on the key interest rate.

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

• Support levels: 1.3220, 1.3195, 1.3170
• Resistance levels: 1.3245, 1.3300

If the price fixed above 1.3245, further growth in USD/CAD quotes is expected. The movement is tending to the round level of 1.3300.

An alternative could be a decline in the USD/CAD currency pair to 1.3190-1.3170.

The USD/JPY currency pair continues to show a negative trend. The trading instrument has updated monthly lows. The demand for safe assets has grown significantly. At the moment, USD/JPY quotes are testing the level of 104.15. The level of 104.40 is already a “mirror” resistance. The yen has the potential for further growth against the greenback. 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 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: 104.15, 104.00, 103.70
• Resistance levels: 104.40, 104.55, 104.65

If the price fixes below 104.15, a further fall in USD/JPY quotes is expected. The movement is tending to 103.80-103.60.

An alternative could be the growth of the USD/JPY currency pair to 104.60-104.90.

by JustMarkets, 2020.10.28

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.