The Analytical Overview of the Main Currency Pairs on 2020.08.25

The EUR/USD currency pair

• Prev Open: 1.17900
• Open: 1.17848
• % chg. over the last day: -0.09
• Day's range: 1.17848 – 1.18202
• 52 wk range: 1.0637 – 1.1967

Since the beginning of this week, the greenback has shown a variety of trends against the basket of world currencies. EUR/USD quotes are consolidating. At the moment, the local support and resistance levels are 1.1785 and 1.1825, respectively. Investors expect additional drivers. The key event this week will be a speech by the head of the Fed at a symposium in Jackson Hole, which begins on August 27. We recommend opening positions from key levels.

• – German GDP report at 09:00 (GMT+3:00);
• – German IFO business climate index at 11:00 (GMT+3:00);
• – CB consumer confidence index in the US 17:00 (GMT+3:00);
• – New home sales in the US at 17:00 (GMT+3:00).

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 below the %D line, which indicates the bearish sentiment.

• Support levels: 1.1785, 1.1755, 1.1725
• Resistance levels: 1.1825, 1.1850, 1.1885

If the price fixes below 1.1785, EUR/USD quotes are expected to fall. The movement is tending to 1.1750-1.1725.

An alternative could be the growth of the EUR/USD currency pair to 1.1860-1.1890.

The GBP/USD currency pair

• Prev Open: 1.30809
• Open: 1.30558
• % chg. over the last day: -0.23
• Day's range: 1.30535 – 1.31156
• 52 wk range: 1.1409 – 1.3516

The GBP/USD currency pair is in a sideways trend. There is no defined trend. At the moment, the local support and resistance levels are 1.3075 and 1.3120, respectively. The British pound is tending to decline against the US dollar. Today we recommend paying attention to economic releases from the US. Positions should be opened from key levels.

The news feed on the UK economy is calm.

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 below the %D line, which gives a signal to sell GBP/USD.

• Support levels: 1.3075, 1.3050, 1.3015
• Resistance levels: 1.3120, 1.3145, 1.3170

If the price fixes below 1.3075, GBP/USD quotes are expected to fall. The movement is tending to 1.3030-1.3000.

An alternative could be the growth of the GBP/USD currency pair to 1.3160-1.3190.

The USD/CAD currency pair

• Prev Open: 1.31740
• Open: 1.32161
• % chg. over the last day: +0.27
• Day's range: 1.32114 – 1.32393
• 52 wk range: 1.2949 – 1.4669

In the last sessions, trades on the USD/CAD currency pair are very active. At the same time, there is no defined trend. At the moment, the loonie is consolidating in the range of 1.3195-1.3240. Financial market participants expect additional drivers. Today, we recommend paying attention to economic releases from the US, as well as the dynamics of oil prices. Positions should be opened from key levels.

The news feed on Canada's economy is calm.

Indicators do not give accurate signals: 50 MA has crossed 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 has crossed the %D line. There are no signals at the moment.

• Support levels: 1.3195, 1.3160, 1.3135
• Resistance levels: 1.3240, 1.3270, 1.3310

If the price fixes above 1.3240, USD/CAD purchases should be considered. The movement is tending to 1.3270-1.3300.

An alternative could be a decline in the USD/CAD currency pair to 1.3160-1.3130.

There are purchases on the USD/JPY currency pair. The trading instrument has updated local highs. At the moment, USD/JPY quotes are testing the resistance level of 106.25. The level of 106.00 is already a "mirror" support. The USD/JPY currency pair has the potential for further growth. We recommend paying attention to the dynamics of US government bonds yield. Positions should be opened from key levels.

The publication of important economic releases from Japan is not planned today.

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 overbought zone, the %K line is above the %D line, which gives a weak signal to buy USD/JPY.

• Support levels: 106.00, 105.70, 105.45
• Resistance levels: 106.25, 106.45, 106.65

If the price fixes above the level of 106.25, further growth in USD/JPY quotes is expected. The movement is tending to 106.50-106.80.

An alternative could be a decline in the USD/JPY currency pair to 105.70-105.50.

by JMarkets, 2020.08.25

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.