The Analytical Overview of the Main Currency Pairs on 2020.07.07

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.12432
  • Open: 1.13080
  • % chg. over the last day: +0.56
  • Day's range: 1.12590 – 1.13325
  • 52 wk range: 1.0777 – 1.1494

The EUR/USD currency pair went down. The trading tool has updated local lows. At the moment, EUR/USD quotes are consolidating in the range of 1.1250-1.1280. Demand for risky assets has weakened amid new outbreaks of coronavirus disease. Investors are concerned about the possible return of restrictive measures. Greenback was supported by optimistic economic releases from the USA. In June, the ISM U.S. Purchasing Managers Index accelerated from 45.4 to 57.1. The single currency is tending decline. We recommend opening positions from key support and resistance levels.

The news feed on 2020.07.07:
  • - the number of open jobs in the US labor market (JOLTS) at 17:00 (GMT+3:00).
  • We also recommend paying attention to the speeches of FOMC representatives.

EUR/USD

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

The MACD histogram has begun to decline, indicating the 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: 1.1250, 1.1220, 1.1190
  • Resistance levels: 1.1280, 1.1300, 1.1325

If the price fixes below the level of 1.1250, a further fall in the EUR/USD quotes is expected. The movement is tending to 1.1220-1.1200.

An alternative could be the growth of the EUR/USD currency pair to 1.1300-1.1325.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.24618
  • Open: 1.24815
  • % chg. over the last day: +0.15
  • Day's range: 1.24624 – 1.25181
  • 52 wk range: 1.1466 – 1.3516

The GBP/USD currency pair is still being traded in a flat. Unidirectional trends are not observed. The pound sterling is testing local support and resistance levels: 1.2460 and 1.2510, respectively. Investors expect additional drivers. In the near future, a technical correction of the trading instrument is possible. Positions must be opened from key levels.

The news feed on the UK economy is pretty calm.

GBP/USD

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

The MACD histogram is near the 0 mark.

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

Trading recommendations
  • Support levels: 1.2460, 1.2435, 1.2400
  • Resistance levels: 1.2510, 1.2540

If the price fixes above 1.2510, GBP/USD is expected to rise. The movement is tending to 1.2540-1.2570.

An alternative could be a decrease in the GBP/USD currency pair to 1.2430-1.2400.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.35601
  • Open: 1.35324
  • % chg. over the last day: -0.09
  • Day's range: 1.35246 – 1.35885
  • 52 wk range: 1.2949 – 1.4668

USD/CAD quotes have moved to growth. The trading tool has updated local highs. At the moment, the USD/CAD currency pair is consolidating in the range of 1.3555-1.3585. The technical pattern signals a further correction of quotes. We are expecting important economic releases from Canada. We recommend you to pay attention to the dynamics of prices of "black gold". Positions must be opened from key levels.

At 17:00 (GMT+3:00), Ivey index of business activity in Canada will be published.

USD/CAD

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

The MACD histogram has started to rise, indicating a possible correction of the USD/CAD currency pair.

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

Trading recommendations
  • Support levels: 1.3555, 1.3520, 1.3490
  • Resistance levels: 1.3585, 1.3610, 1.3650

If the price fixes above 1.3585, further growth of the USD/CAD quotes is expected. The potential movement is to 1.3610-1.3650.

An alternative could be a decrease in the USD/CAD currency pair to 1.3530-1.3500.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.460
  • Open: 107.347
  • % chg. over the last day: -0.20
  • Day's range: 107.246 – 107.790
  • 52 wk range: 101.19 – 112.41

Since the beginning of this week, trades in USD/JPY have been very active. At the same time, a unidirectional trend is not observed. The trading instrument is in a sideways trend. At the moment, USD/JPY quotes are testing the resistance level of 107.75. The mark of 107.45 is immediate support. We recommend you to pay attention to the dynamics of yield on US government bonds. Positions must be opened from key levels.

The publication of important economic reports from Japan is not planned.

USD/JPY

Indicators signal the power of buyers: the price has fixed above 50 MA and 100 MA.

The MACD histogram has started to rise, indicating bullish sentiment.

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

Trading recommendations
  • Support levels: 107.45, 107.25, 107.05
  • Resistance levels: 107.75, 108.10

If the price fixes above 107.75, USD/JPY is expected to rise. The movement is tending to 108.00-108.25.

An alternative could be a decrease in the USD/JPY currency pair to 107.25-107.00.

by JustForex, 2020.07.07

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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