The Analytical Overview of the Main Currency Pairs on 2020.07.16

The EUR/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.13976
  • Open: 1.14096
  • % chg. over the last day: +0.12
  • Day's range: 1.13928 – 1.14186
  • 52 wk range: 1.0777  – 1.1494

The EUR/USD currency pair has become stable after a prolonged rally. At the moment, the trading instrument is consolidating near the round level of 1.1400. Investors have taken a wait-and-see attitude before today's ECB meeting. It is expected that the regulator will keep the key marks of monetary policy at the same level. We also recommend paying attention to economic releases from the US. Positions should be opened from key levels.

The news feed on 2020.07.16:
  • - ECB interest rate decision at 14:45 (GMT+3:00);
  • - Report on retail sales in the US at 15:30 (GMT+3:00);
  • - Initial jobless claims in the US at 15:30 (GMT+3:00);
  • - Philadelphia Fed manufacturing index at 15:30 (GMT+3:00).
EUR/USD

Indicators do not give accurate signals: the price has crossed the 50 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 indicates the bullish sentiment.

Trading recommendations
  • Support levels: 1.1385, 1.1365, 1.1325
  • Resistance levels: 1.1420, 1.1450

If the price fixes above 1.1420, further growth in EUR/USD quotes is expected. The movement is tending to the round level of 1.1500.

An alternative could be a decline in the EUR/USD currency pair to 1.1350-1.1320.

The GBP/USD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.25468
  • Open: 1.25731
  • % chg. over the last day: +0.24
  • Day's range: 1.25266 – 1.25938
  • 52 wk range: 1.1466  – 1.3516

GBP/USD quotes have been declining. The British pound has updated local lows. At the moment, the GBP/USD currency pair is consolidating. The key range is 1.2520-1.2565. The technical pattern signals a further fall in the trading instrument. We expect important economic reports from the US. Positions should be opened from key levels.

The UK has published rather optimistic data on the labor market.

GBP/USD

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

The MACD histogram has moved into the negative zone, indicating 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.

Trading recommendations
  • Support levels: 1.2520, 1.2480, 1.2460
  • Resistance levels: 1.2565, 1.2590, 1.2640

If the price fixes below 1.2520, a further drop in the GBP/USD quotes is expected. The movement is tending to 1.2480-1.2460.

An alternative could be the growth of the GBP/USD currency pair to 1.2590-1.2620.

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The USD/CAD currency pair

Technical indicators of the currency pair:
  • Prev Open: 1.36085
  • Open: 1.35095
  • % chg. over the last day: -0.77
  • Day's range: 1.35013 – 1.35276
  • 52 wk range: 1.2949  – 1.4668

Yesterday, aggressive sales were observed on the USD/CAD currency pair. The loonie has added more than 100 points in price against the greenback. The Bank of Canada, as expected, kept the key marks of monetary policy at the same level. The regulator does not plan to adjust interest rates for a long period of time. At the moment, USD/CAD quotes have become stable. The trading instrument is consolidating in the range of 1.3500-1.3540. We recommend opening positions from these marks.

The news feed on Canada's economy is calm.

USD/CAD

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 is above the %D line, which indicates a possible correction of the USD/CAD currency pair.

Trading recommendations
  • Support levels: 1.3500, 1.3450
  • Resistance levels: 1.3540, 1.3560, 1.3585

If the price fixes above 1.3540, USD/CAD quotes are expected to correct. The movement is tending to 1.3560-1.3580.

An alternative may be a decline in the USD/CAD currency pair to 1.3470-1.3450.

The USD/JPY currency pair

Technical indicators of the currency pair:
  • Prev Open: 107.182
  • Open: 106.930
  • % chg. over the last day: -0.28
  • Day's range: 106.986 – 107.077
  • 52 wk range: 101.19  – 112.41

The technical pattern on the USD/JPY currency pair is ambiguous. The trading instrument is consolidating. Local support and resistance levels are 106.85 and 107.10, respectively. Investors expect additional drivers. We recommend paying attention to economic reports, as well as to the dynamics of the US government bonds yield. Positions should be opened from key levels.

The news feed on Japan's economy is calm.

USD/JPY

Indicators do not give accurate signals: the price has crossed the 50 MA and 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 indicates the bullish sentiment.

Trading recommendations
  • Support levels: 106.85, 106.65
  • Resistance levels: 107.10, 107.30, 107.40

If the price fixes below 106.85, a further drop in USD/JPY quotes is expected. The movement is tending to 106.65-106.50.

An alternative could be the growth of the USD/JPY currency pair to 107.30-107.50.

by JustForex, 2020.07.16

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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