The Analytical Overview of the Main Currency Pairs on 2020.07.01

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12361
  • Open: 1.12337
  • % chg. over the last day: -0.02
  • Day's range: 1.12154 – 1.12448
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair continues to consolidate. The technical pattern is ambiguous. At the moment, the local support and resistance levels are 1.1215 and 1.1250, respectively. Financial market participants have taken a wait-and-see attitude before the publication of the FOMC meeting minutes, as well as important economic releases from Germany and the US. Yesterday, the Fed Chairman Jerome Powell said that the second wave of COVID-19 outbreak could force the government and people to halt their economic activity again. Positions should be opened from key levels.

The Economic News Feed for 2020.07.01:
  • - A number of indicators on economic activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;
  • - ISM manufacturing PMI at 17:00 (GMT+3:00);
  • - Publication of the FOMC meeting minutes at 21:00 (GMT+3:00).
EUR/USD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.1215, 1.1190, 1.1170
  • Resistance levels: 1.1250, 1.1285, 1.1310

If the price fixes below 1.1215, EUR/USD quotes are expected to fall. The movement is tending to 1.1180-1.1160.

An alternative could be the growth of the EUR/USD currency pair to 1.1280-1.1300.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.22995
  • Open: 1.23965
  • % chg. over the last day: +0.83
  • Day's range: 1.23592 – 1.24138
  • 52 wk range: 1.1466 – 1.3516

GBP/USD quotes have been growing. The British pound has updated local highs. Currently, the GBP/USD currency pair is consolidating. The key range is 1.2360-1.2415. The technical pattern signals the further growth of trading instrument. We expect the publication of important economic reports from the UK and the US. Investors are still concerned about the start of a new wave of the coronavirus epidemic. Positions should be opened from key levels.

GBP/USD

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

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

Stochastic Oscillator is in the neutral zone, the %K line is above the %D line, which indicates the development of bullish sentiment.

Trading recommendations
  • Support levels: 1.2360, 1.2315, 1.2260
  • Resistance levels: 1.2415, 1.2455, 1.2500

If the price fixes above 1.2415, further growth of GBP/USD quotes is expected. The movement is tending to 1.2450-1.2480.

An alternative could be a decrease in the GBP/USD currency pair to 1.2330-1.2300.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.36588
  • Open: 1.35753
  • % chg. over the last day: -0.61
  • Day's range: 1.35456 – 1.35861
  • 52 wk range: 1.2949 – 1.4668

There are aggressive sales on the USD/CAD currency pair. The loonie has ignored Canada's weak GDP report. During yesterday's and today's trading sessions, the Canadian dollar has added more than 100 points in price against the greenback. The loonie is currently consolidating in the range of 1.3550-1.3585. USD/CAD quotes have the potential for further decline. Positive dynamics of "black gold" prices support the Canadian dollar. Positions should be opened from key levels.

The news feed on Canada's economy is calm today.

USD/CAD

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

The MACD histogram is in the negative zone, indicating the bearish sentiment.

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

Trading recommendations
  • Support levels: 1.3550, 1.3525, 1.3490
  • Resistance levels: 1.3585, 1.3615

If the price fixes below 1.3550, a further drop in USD/CAD quotes is expected. The movement is tending to 1.3525-1.3490.

An alternative could be the growth of the USD/CAD currency pair to 1.3610-1.3640.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.563
  • Open: 107.920
  • % chg. over the last day: +0.34
  • Day's range: 107.468 – 108.163
  • 52 wk range: 101.19 – 112.41

The USD/JPY currency pair has been declining. At the moment, the trading instrument is testing a "mirror" support level of 107.45. The 107.80 mark is the nearest resistance. USD/JPY quotes have the potential for further decline. Today we recommend paying attention to economic releases from the US. Positions should be opened from key levels.

During the Asian trading session, weak economic data from Tankan have been published.

USD/JPY

Indicators do not give accurate signals: the price has crossed 50 MA.

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

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

Trading recommendations
  • Support levels: 107.45, 107.05, 106.80
  • Resistance levels: 107.80, 108.10

If the price fixes below 107.45, a further drop in USD/JPY quotes is expected. The movement is tending to the round level of 107.00.

An alternative could be the growth of the USD/JPY currency pair to 108.00-108.20.

by JustForex, 2020.07.01

We recommend you to get acquainted with the daily overview of the news feed.

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.

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